Global X Funds, the New York-based ETF provider known for niche
strategies, filed regulatory paperwork to market a U.S.-focused
high-dividend ETF that would also pick securities based on
volatility levels-a strategy that's akin to a fund Invesco
PowerShares rolled out last month.
The Global X Super Dividend U.S. ETF, which will list on the New
York Stock Exchange's electronic trading platform Arca under the
ticker 'DIV', will track the INDXX SuperDividend U.S. Low
Volatility Index and invest in stocks, master limited partnerships
and REITs that have paid dividends consistently in the previous two
The fund will also screen for volatility, picking securities
that show lower volatility relative to the market, the filing
As noted, DIV will go head-to-head with another newcomer:the
two-week-old PowerShares S&P 500 High Dividend Portfolio
(NYSEArca:SPHD), a pioneering fund that was the first to blend two
of the hottest themes in ETF investing these days:high dividends
and low volatility.
Indeed, investors have embraced all sorts of strategies that
promise income in an environment of compressed yields, as well as
those that keep volatility in check. Funds like the $2.48 billion
PowerShares S&P 500 Low Volatility Portfolio (NYSEArca:SPLV)
and the $2.22 billion iShares High Dividend Equity Index Fund
(NYSEArca:HDV) speak to that demand.
But what SPHD brought to the market-and what DIV also hopes to
achieve-is the blending of these two themes into a single wrapper
as a way to provide investors with one portfolio that not only
generates income but also limits exposure to companies whose shares
might be subject to relatively sharp movements in price.
DIV expands on Global X's success with its global-in-scope
Global X SuperDividend ETF (NYSEArca:SDIV), which has gathered $161
million since it came to market in the summer of 2011. SDIV costs
No fees for the Global X Super Dividend U.S. ETF were disclosed
in the filing.
SPHD, which has gathered $10 million so far, has an annual
expense ratio of 0.30 percent.
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