- The Global X SuperDividend U.S. ETF has a very poor selection methodology that prioritizes very high-yielding securities over safety and growth.
- It also places constraints on security betas, giving the illusion of a low-volatile methodology, but in practice, has resulted in an even riskier fund than the S&P 500.
- The investment case for this ETF was originally based on a theory of rising interest rates, but given the current guidance from the U.S. Federal Reserve, this no longer applies.
- The ETF has only grown an annualized 2% since 2013 (including dividends) compared to SPY's 14%, and investors can expect more of the same underperformance in 2021.
For further details see:
The Global X SuperDividend U.S. ETF: A High-Yield, Low-Safety Approach That Hasn't Worked Out