Global X Superdividing ETF pays 10 %. Is it good to be true?

Investors who are looking for income often invest in the exchange boxes on the Stock Exchange (ETFS) as a good way to diversify and collect profits. However, if the profit return is exceptionally high, is it very good to be true?

Although diversification via ETFS provides investors some additional safety, it is still important to take a closer look at the types of stocks inside the box before investing in it and relying on their batches.

One high -yielding ETF that may attract the attention of investors at the present time is Global X Superdudnded ETF (NYSEMKT: SDIV). It causes 10 % amazing, which is more than Eight times the S & P 500 Only 1.2 % average. Could this delicious yield be safe, or is it very good to be true? Here is what you need to know about these boxes.

There are 106 holdings at Global X Superdudnd ETF, which gives investors a good amount of diversification. A quarter of the stocks are based in the United States, but then, it is a very large international wallet. Hong Kong represents 16 % of its property, followed by Brazil by 9 %, and Britain is just less.

Many shares are those that investors will not be excessive. One of its biggest functions in Etaka EnergyOil and gas company based in Britain. On the whole, the arrows in Etf Superdudnd are not names or home names known for the presence of impressive records to pay the stock profits. Among the most famous names is the clothing company GuessIt results in 5.4 %, however Free cash flow He was negative 12 months away.

Through the integrity of doubtful profits and high -exposure to international markets and definitions, investors may have some dangerous question marks about the safety of profit income from these boxes. To highlight this point, the next chart shows a decrease in fund profit payments in recent years.

This is a base of thumb: Great profits, but not when it is used just to compensate for capital losses. ETF SuperDendend has not been a good purchase in recent years, as the focus was not simply on high -yield profits. ETF decreased by 30 % in five years, and its total revenue (which includes profit payments) came during that period less than 20 %. This is not anywhere near a total of 97 % that you achieved during the same period if you have reflected the market simply with ETF S & P 500.