Introducing The MSCI SuperDividend EAFE ETF

Published Thu, 17 Nov 2016 14:03:38 -0500 on Seeking Alpha

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.

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.

Definitions:
MSCI EAFE Top 50 Dividend Index: The MSCI EAFE Top 50 Dividend Index invests in 50 of the highest yielding equity securities from international developed markets across Europe, Australasia, and the Far East.
MSCI EAFE Index: The MSCI EAFE Index is a market cap weighted index consisting of equity securities from Developed Markets across Europe, Australasia, and the Far East. The... Read more

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