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Global X Superdiddend US ETF(NYSEMKT: DIV) and SPDR portfolio S & P 500 High Dividend ETF(NYSEMKT: Spyd) Both have similar goals to buy high -income stocks. But they work slightly in a slightly different way.
SPDR portfolio S & P 500 High Dividend ETF 4.1% is better than 5.4% of the Global X Superduiddend US ETF?
SPDR portfolio S & P 500 High Dividend ETF is very easy to understand. It starts with only inner dividend payments. that S & P 500(SNPINDEX: ^GSPC)This is a selective list of large companies to represent a wide range of US economies. Dividend payers are the highest or lowest due to dividend yield.
The 80 -level stocks are put into the ETF using equal weighting methodology, which has the same effect on the overall performance. In addition to equal weighted beats, this is a very simple approach.
Image Source: Getty Image.
Global X Superdudmedend US ETF is much more complicated. Start judging I’m watching betaVolatility for a wider market. More than 1 beta suggests that stocks are more volatile than markets, and less than 1 beta is less volatile. Global X Superdudmedend US ETF selects only among stocks with beta less than 0.85. The next pass is to remove stocks with a dividend yield of less than 1% or 20%.
After that, the remaining stocks have been paid at least for the last two years, and the current dividends are 50%of the previous year. This last is interesting because a company that cuts dividends can stay in the mix. In this final list, 50 stocks with the highest dividend income are selected. SPDR portfolio S & P 500 High Dividend ETF equals equivalent weighted methodology.
Image Source: Getty Image.
Choosing a stock that uses only high yields as a decision factor is a dangerous approach to investment. The highest level of stock list includes a company that is essentially faced with material problems, so it is not advantageous in Wall Street for justifiable reasons. Therefore, SPDR portfolio S & P 500 High Dividend ETF and Global X Superdiddend US ETF have taken measures to reduce risks.
SPDR portfolio S & P 500 High Dividend ETF relies on the selection criteria for the S & P 500 index. About 500 shares of the index are selected by the committee because they are large and economically important. It will essentially remove less desirable companies over time.
Global X Superdiddend US ETF uses beta and is especially attempting to find low -power stocks. On the other hand, if the yield is removed, the most obscene yield situation that requires deep analysis to obtain a handle by maintaining a return of more than 20%.
On the other hand, the use of equal weights by these two ETFs (Exchange-Traded Funds) effectively captures a single stock damage to the performance of the entire portfolio. In other words, there is a limit to how many benefits are derived from a single investment. But risk management is an important aspect of these ETFs.
As the chart emphasizes, over time, the Global X Superdudmedent US ETF is inferior to the SPDR portfolio S & P 500 High Dividend ETF based on its total profit. Since the total revenue includes dividend reinvestment, the graph is basically a notable difference in yield between the two ETFs.
But this chart says much more. The total return is a price -only return. Basically, the price -dedicated rate of return was seen by investors who paid the cost of living using dividends. And the number is quite bad for the Global X Superdoldend US ETF, which has lost about 25%of its value over the last decade.
The value of SPDR portfolio S & P 500 High Dividend ETF has increased by about 45%. That’s a mass 70 % point difference!
One of the last charts showing the actual dividends that this ETF spits out is beneficial. The dividends of the SPDR portfolio S & P 500 High Dividend ETF are more volatile, but the GLOBAL X SuperdiledDend US ETF was higher than the dividends paid. Global X Superdoldudend’s dividend of US ETFs has been lowered over time.
This is actually completely meaningful. As the asset base increases, SPDR portfolio S & P 500 High Dividend ETF has more capital for producing more dividends. As the capital base decreases, Global X Superdoldudend uses less capital and less capacity to generate dividends.
If you use it to reinvest dividends or pay for living costs, the SPDR portfolio S & P 500 High Dividend ETF looks better than Global X Superdend US ETF. In short, adding beta to the mix has demonstrated that there is too much drag in performance to justify the adding the global X Superdend US ETF to the income portfolio.
Of course, this is unless the short -term volatility is specifically limited during the market uncertainty. But such tactics are actually a short -term approach. If you are an investor, the SPDR portfolio S & P 500 High Dividend ETF looks like a winner here.
Do you feel like you’ve missed the boat while buying the most successful stocks? Then you will want to hear this.
In rare cases, our professional analyst team “Double down” stock Recommended for the company they think. If you’re worried, if you’ve already missed the opportunity to invest, it’s best to buy before it’s too late. And numbers speak themselves.
nvidia:If you invested $ 1,000 when it was twice in 2009You will have $ 299,728! **
apologize: If you invested $ 1,000 when doubled in 2008 You will have $ 39,754! **
Netflix: If you invested $ 1,000 when doubled in 2004 You will have $ 480,061! **
At present, we are issuing a “double down” warning for three amazing companies, and there may be no chance.
*Stock advisors will be returned as of March 14, 2025
Reuben GREGG Brewer There is no position in the shares mentioned. MOTLEY FOOL has no location in any of the shares mentioned. MOTLEY FOOL A for a Public policy.
