1Mon·

Global X SuperDividend

What do you think about the dividend of Global X SuperDividend ETF (SDIV) ?

I've been holding this ETF since January this year, and it has been providing me with a steady cash flow from monthly dividends. Plus, I've gained about €2,000 in capital appreciation along the way thanks to the right entries.

However, I keep reading mixed opinions online:

Some say “It’s perfect for passive income with over 10% yield!”
Others warn “A big part of the dividend is return of capital, so you might be losing actual principal!”

I’m genuinely interested—what’s your experience or view?

I want opinions with real motivations and reasons behind them.

Let’s share strategies and insights!

#GlobalXSuperDividend
#SDIV
#DividendInvesting
#PassiveIncome
#ETFInvesting
#FinanceDiscussion
#InvestmentStrategy

7 Comments

SanSebastian@WarrenamBuffet

1Mon

I think all ETFS with Super Divi in their name are super garbage, total return totally scary. Look at the price performance, the dividend doesn't save anything.

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Raffaele@Raffdr

1Mon

@WarrenamBuffet Thanks for your reply. It's a new ETF, but it seems fairly stable for a year, with a price consistently between 8.20 and 8.30. Fortunately, between dividends and income and expenses, I currently have a cushion of €3,000. For now, it's providing me with good cash flow, but it seems to be fairly stable now. The last few years have been a roller coaster for many stocks.

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SanSebastian@WarrenamBuffet

1Mon

@Raffdr yes but there are other GLobal X Etfs....i like none of them

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Illusion@Illusion

3Wk

@WarrenamBuffet

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SanSebastian@WarrenamBuffet

3Wk

@Illusion ? :-)

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Arco@Dividendbelegger

3Wk

@WarrenamBuffet Totally agree. Sold mine long time ago. Currently in $JEPQ and $JEGP .

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Kevin@KevinW

1Wk

Its strategy is to take the top 100 companies that pay the most dividends. Companies that pay 11% of their value in dividends usually can't sustain that for a long period of time. Therefore, a large portion of the companies you're investing in through this ETF aren't sustainable.

Now, when a company starts to pay fewer dividends, the fund manager will sell the shares and purchase shares of another company that just made it into the top 100. However, when this happens, the company that's being sold has already lost a portion of its value, and the new company probably gained value, making this ETF potentially very volatile. In other words: you're always playing catch-up.

With that in mind: it doesn't mean this ETF can't have a role in an investment strategy. Personally, I have a small portion of my portfolio reserved for this ETF, and I'm currently at a total return of +9.72% according to getquin. I accept the risk of volatility, keep the invested amount relatively low, and I reinvest all my dividends in other stable, dividend-paying ETFs. Two things can happen: either the value will plummet, and then it was fun for the time being, and at least it contributed to my other ETFs in my portfolio. Or, against all odds and warnings, the strategy does work in the long term, and taking this risk paid off. Just have to know what you're getting into and what risk you're taking.

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