1Settimana·

Global X launches European SuperDividend ETF

... this ETF is only two days old and an offshoot of the controversial $SDIP (+0,35%) ETF.

Contains 25 stocks from Norway, the UK, Italy, Poland and several other countries. Distributions are made monthly.

... will probably find its followers.

https://globalxetfs.eu/funds/eusd/#

EDIT: here is some more reading

https://www.etfstream.com/articles/global-x-unveils-super-dividend-etf-duo

14 Commenti

Dividende > Zinsen@GoDividend

1Settimana

But I don't think the supporters will be here 😅

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Epi@Epi

1Settimana

@GoDividend But I don't think you believe who all believes in HighDivETFs here. 🤔

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Dividende > Zinsen@GoDividend

1Settimana

@Epi Conclusion on the volatility of the portfolio
The positions in the portfolio, particularly those in the energy and shipping sectors, tend to be associated with high volatility. These sectors are heavily dependent on fluctuating commodity prices (oil and gas) and global trading conditions, which can lead to significant price fluctuations.
For investors, this means that the value of the ETF may be subject to significant fluctuations. This is typical of an investment strategy that aims for high dividend yields, as these are often delivered by higher risk cyclical sectors.

Well that will be exciting to watch

Here is an analysis of the volatility of the top positions:
High volatility
Serica Energy PLC: The volatility of this share is between 29% and over 60%, depending on the period under review. This indicates strong price fluctuations.
Vår Energi ASA: Monthly volatility values of up to 38% were found for this company. This confirms that the share is subject to significant price fluctuations. One source classifies the share as an "uncertain investment with increased risk" due to its "unreliable earnings performance".
Hoegh Autoliners ASA: The wide range between the 52-week high and low shows that the share is very volatile.

Aker BP ASA: The research provides different results here, which can occur with volatility measurements. One source gives a beta value of 0.57, while another speaks of a beta of 1.63. Irrespective of this, the share is often included in lists of the "most volatile shares", which indicates an increased risk.

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Epi@Epi

1Settimana

@GoDividend Great point.
How do these ETFs work? Every quarter or so, they scan the market for shares that had a very high payout in the previous quarter and buy them. If the high distributions were one-off effects, e.g. due to the sale of company shares, then the distributions fall again immediately after the purchase.
The ETF is a bet that the disproportionate distributions will last longer than one rebalancing period. Nothing more. 🤷

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Dividende > Zinsen@GoDividend

1Settimana

@Epi No, they stay in longer because they get a grace period. Entry hurdle distribution above x percent. After that, the payout may fall slightly.
So you then "quickly" have highly volatile stocks in terms of price coupled with distributions that level off somewhere.

But my first thought was-> Euro shares and monthly distributions?

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Yieldrology@Yield-Ahead

@GoDividend Well, I'm certainly not one of them :) No ETF for me.

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S.A.U.@SAUgut77

@Epi They are now available like sand by the sea...and at least 98% of them are rejects.

I have 2 exotics in my depot.

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S.A.U.@SAUgut77

@Yield-Ahead Interesting individual picks included, but no investment in the compilation.

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CrashBurner@Psychedelic_Sunflower

Oh dear... what kind of money-destroying machine is this? I've never heard of at least 75% of the companies included😅

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S.A.U.@SAUgut77

@Psychedelic_Sunflower e also include some interesting individual picks, but not worth investing in given the composition.

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K@TechNav

@SAUgut77 Here's something new for you. Take a look at the holdings of the Europe ETF 😉

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S.A.U.@SAUgut77

@TechNav thanks, I'll take a closer look at it on WE 👍🏻

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S.A.U.@SAUgut77

@TechNav puhhh...difficult portfolio...I won't set foot in the door 😉

But you can definitely pick out some interesting individual picks from the whole thing.

$HAUTO and $VAR are already in my pot.

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wealth_architect_957@wealth_architect_957

1Settimana

Thanks for sharing!

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