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Introducing the MSCI SuperDividend EAFE ETF

Nov 15, 2016

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On Tuesday, November 15th, Global X launched its seventh fund in the billion-dollar SuperDividend family of ETFs. The latest, the Global X MSCI SuperDividend EAFE ETF (EFAS), targets 50 of the highest dividend yielding securities in the MSCI EAFE Index and equal weights them. Securities are screened quarterly for dividend cuts.

Recently, we wrote about how investors are stretched to find both income and growth in an environment where interest rates are low and retirements are lasting longer than ever. (Read more about insights on the rising importance of high dividend stocks here.) We believe that focusing on the highest dividend paying segment of the stock market, the ‘SuperDividend Payers’, can potentially increase a portfolio’s yield while growing principal over the long term.

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EFAS differs from the rest of the SuperDividend family in that it targets only international developed securities listed in Europe, Australasia, and the Far East. An allocation to these regions can potentially help diversify one’s geographic, interest rate, and currency risks.

To learn more about the Global X MSCI SuperDividend EAFE ETF, click here.

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Category: Articles

Topics: Dividends, Income Strategies

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Investing involves risk, including the possible loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. High yielding stocks are often speculative, high risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fund`s performance.

EFAS is non-diversified, which represents a heightened risk to investors. Furthermore, EFAS invests in small and mid-capitalization companies, which pose greater risks than large companies. Because the Fund’s NAV is determined in U.S. dollars, the foreign issuers (including investments in ADRs and GDRs) are subject to the risks associated with investing in those foreign markets, such as heightened risks of inflation or nationalization. EFAS may be exposed to the risks of leverage, which may be considered a speculative investment technique. Leverage magnifies the potential for gain and loss on amounts invested and therefore increases the risks associated with investing in EFAS. High short-term performance of the fund is unusual and investors should not expect such performance to be repeated.

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds’ prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxetfs.com. Read the prospectus carefully before investing.

Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.

Global X NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the Mid-Point between the Bid and Ask price as of the close of exchange.