Pass on this ETF

Article Excerpt

GLOBAL X SUPERDIVIDEND ETF $19.63 (New York symbol SDIV; TSINetwork ETF Rating: Aggressive; Market cap: $966.8 million) invests in 100 of the highest-yielding stocks worldwide. Stocks in the portfolio are equally weighted to reduce the risk associated with a high exposure to individual companies. The stocks must also meet criteria for market cap and liquidity. With 57.7% of the ETF’s assets, the U.S. is its largest country allocation. That’s followed by Australia (11.9%), the U.K. (5.2%), South Africa (3.1%), New Zealand (2.8%), Australia (3.3%), Russia (2.5%) and the Netherlands (1.8%). Developed markets comprise 89% of the fund’s $940 million in assets. Emerging markets account for 11%. The ETF charges an MER of 0.58%. Since its June 2011 launch, the fund has had a total return (dividends plus capital growth) of 39.5%. That’s less than half the 88.4% gain for the MSCI All Country Index. The fund pays a fluctuating monthly dividend, which amounted to $1.52 a unit for the past 12 months. That gives it a high…