NEW YORK, March 12, 2013 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange- traded funds (ETFs), today launched the Global X SuperDividend U.S. ETF (Ticker: DIV). DIV provides exposure to 50 companies that rank among the highest dividend yielding equity securities in the United States.
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Recent research suggests that investors may be overlooking significant opportunities in high dividend-paying equities. A study of global stocks for the period between 2003-2012 shows that dividend paying stocks have, over time and based on numerous metrics, performed well versus non-dividend paying stocks (see Globalxfunds.com/DividendsWhitepaper).
The Global X SuperDividend U.S. ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the INDXX SuperDividend™ U.S. Low Volatility Index. By equal weighting across a diverse group of 50 securities, investors have less exposure to single-company risk. Sector caps of 25% are used to ensure that the portfolio is not heavily overweight in a particular sector and to provide an additional layer of diversification. A low-volatility filter is used in an effort to further dampen the volatility of the portfolio, while additional filters are applied to exclude companies that are most likely to cut their dividends, as determined by the Index provider. The Fund expects to pay monthly dividends.
DIV offers investors exposure to a broad group of industries: REITS (24%), Utilities (24%), MLPs (18%), Telecommunications (12%), Consumer Staples (8%), Health Care (6%), Consumer Discretionary (4%), Industrials (2%), and Technology (2%).
"In an environment where people are seeking monthly income, the SuperDividend U.S. ETF offers convenient access to 50 high yielding companies in the US through one security," said Bruno del Ama, chief executive officer of Global X Funds. "Based on the research we have conducted, we believe very high-yielding dividend stocks are generally overlooked and may play an important role in a portfolio."
ABOUT GLOBAL X FUNDS
Global X Funds is a New York-based provider of exchange-traded funds that facilitates access to investment opportunities across the global markets. With $1.7 billion in managed assets as of March 1, 2013, it is one of the fastest growing ETF providers in the world. Global X Funds currently offers exchange-traded funds that target Income, Commodity Producers, Developed Markets, Emerging Markets, and Special Opportunities fund suites. For more information, please visit www.globalxfunds.com
DISCLOSURE
Investing involves risk, including the possible loss of principal. High yielding stocks are often speculative, high risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fund's performance. The Fund may invest in REIT stocks, which tend to be small- or mid-capitalization stocks and there is the possibility that returns from REITs may trail returns from the overall stock market. Small- and mid-capitalization companies may have greater volatility in price than the stocks of mid- and large-capitalization companies. The Fund is non-diversified which represents a heightened risk to investors. Investments in securities of MLPs involve risk that differ from investments in common stock including risks related to limited control and limited rights to vote on matters affecting the MLP. MLP common units and other equity securities can be affected by macro-economic and other factors affecting the stock market in general, expectations of interest rates, investor sentiment towards MLPs or the energy sector, changes in a particular issuer's financial condition, or unfavorable or unanticipated poor performance of a particular issuer (in the case of MLPs, generally measured in terms of distributable cash flow). Diversification does not prevent all investment loss.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.
INDXX" is a service mark of INDXX and has been licensed for use for certain purposes by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by INDXX nor does this company make any representations regarding the advisability of investing in the Global X Funds.
SOURCE Global X Funds
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