Weakness in Global X MSCI SuperDividend® Em Mkts ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy gets a Low Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in yield exposure and liquidity exposure compared with category peers. High yield exposure is attributed to holding more stocks with high dividend or buyback yields. And a high liquidity exposure is rooted in stocks with higher trading volumes, lending managers more flexibility. The team managing this passive strategy earns a Low People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Natural Resource Partners

Aduro BioTech

ReneSola

Eastside Distilling

VictoryShares Emerging Market Volatility Wtd ETF

Alerus Financial Corp

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Global X MSCI SuperDividend® Em Mkts ETF earns a Low Process Pillar rating. 

The most significant detractor from the rating is the fund's mediocre long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's inferior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.1 stars, also detracts from the process. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis. The parent firm's five-year risk-adjusted success ratio of 28% further limits the process. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

 This strategy tends to hold smaller, deeper value companies compared with its average peer in the Diversified Emerging Mkts Morningstar Category. Examining additional factor exposure, the managers have consistently overweighted yield-paying companies compared with Morningstar Category peers in recent years, shown by the portfolio's high exposure to stocks paying dividends or buying back shares. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. This strategy has also been exposed to liquid stocks during these years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. This is a higher-risk, higher-reward approach. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in energy and financial services relative to the category average by 21.1 and 10.4 percentage points, respectively. The sectors with low exposure compared to category peers are technology and consumer cyclical, underweight the average by 21.5 and 8.5 percentage points of assets, respectively. The strategy owns 61 securities and is relatively top-heavy. Of the strategy's assets, 28.5% are concentrated within the top 10 holdings, as opposed to the typical peer's 25.3%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 87% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Process

Global X’s team receives a Low People Pillar rating. The main factor affecting the rating is the parent firm's five-year success ratio of 30%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 67% also weakens the team. The experience of the management team, which averages four years at this fund, detracts from the rating as well.

People

Mirae Asset Global Investments is a Korean asset manager and a key player in the Asian financial market. It is a wholly owned subsidiary of Mirae Asset Financial Group, founded by Hyeon Joo Park. Park’s leadership and entrepreneurial spirit have been the driving force behind the global rise of Mirae, and he holds a majority stake in the business. 
Mirae Asset has grown significantly over the years (USD 198 billion as of December 2022) across a diversified platform, of which about 60% of assets are managed in South Korea. We believe that Mirae’s core mutual fund business in the Asia-Pac region is relatively strong. It has a collaborative structure, a strong and large investment team, low manager turnover, competitive fees, and a disciplined approach to product-development pointing toward better stewardship practices relative to peers in these markets. However, this is in stark contrast to its exchange-traded fund business, which accounts for 41% of the total assets. 
The firm’s ETF lineup focuses largely on high-risk thematic strategies that seem gimmicky, emphasizing short-term asset-gathering. The firm appears to leverage trending topics such as robotics and artificial intelligence, virtual reality and gaming, and cloud computing. There’s a notable concern regarding the potential liquidation of these funds since they seem to be designed around investment fads. Furthermore, these products are often expensive, especially compared with broadly diversified index funds and ETFs. Unsurprisingly, Mirae's reflexive product-development strategy has led to an increase in fund closures.
Our experience engaging with the MAGI team to gather critical information for the parent assessment has not been as positive. It hasn’t been as transparent in its disclosures, and unlike its peers, its responsiveness has been inadequate. We prefer firms with a more transparent corporate culture. Overall, these actions hold us back, and the firm retains its Parent Pillar rating of Average.

Average

Parent

Global X MSCI SuperDividend Emerging Markets ETF

SDEM follows an equal-weighted index of emerging market countries. The index selects stocks by highest dividend yield, excluding those ranking low on price return.

Alerian MLP ETF

Sonicshares Global Shipping ETF

First Trust STOXX European Select Dividend Index Fund

Legg Mason International Low Volatility High Dividend ETF

Global X Variable Rate Preferred ETF

The Fed stayed put in its September meeting but indicated that rates will remain higher for longer.

High-Dividend ETFs: Winners Amid Fed's Higher-For-Longer Rate Cues

Global X MSCI SuperDividend® Emerging Markets ETF holds 50 high-yield stocks from emerging markets. Exposure to geopolitical and regulatory risks related to China are concerning. Past performance is far behind other emerging markets funds.

SDEM: Enough Downsides To Stay Away

SDEM is a high-yield emerging market ETF paying monthly distributions. It holds 50 of the highest-yielding EM stocks with heavy exposure to China, Taiwan, and Brazil.

SDEM: Don't Fall For This Monthly Income ETF

SDEM is a high yield ETF in emerging markets. Low and decreasing AUM may threaten its existence.

SDEM: 5 Reasons To Snub An 8.5% Yield

Global X Blockchain & Bitcoin Strategy ETF

Global X Blockchain ETF

Global X MSCI China Real Estate ETF

Global X Education ETF

Global X Superdividend ETF

Global X SuperDividend REIT ETF

NEW YORK , Nov. 18, 2022 /PRNewswire/ -- Global X ETFs, the New York-based provider of exchange traded funds (ETFs), today announced a reverse split of the following eight funds: Fund Split Ratio Global X SuperDividend ETF (SDIV) 1:3 Global X MSCI SuperDividend Emerging Markets ETF (SDEM) 1:3 Global X SuperDividend REIT ETF (SRET) 1:3 Global X Education ETF (EDUT) 1:3 Global X MSCI China Real Estate ETF (CHIR) 1:3 Global X Emerging Markets Internet & E-commerce ETF (EWEB) 1:3 Global X Blockchain & Bitcoin Strategy ETF (BITS) 1:4 Global X Blockchain ETF (BKCH) 1:4 Effective after market close on December 19, 2022, the funds listed above will effect a reverse stock split at the above ratios. The reverse stock split will increase the price per share of the Fund with a proportionate decrease in the number of shares outstanding.

Global X ETFs Announces Eight ETF Reverse Stock Splits

Global X NASDAQ 100 Covered Call ETF

Global X Russell 2000 Covered Call ETF

Global X S&P 500 Covered Call ETF

iShares Latin America 40 ETF

JPMorgan Equity Premium Income ETF

Asset prices have dropped all year, while dividend yields increase. Several ETFs offer strong, double-digit TTM dividend yields to investors.

6 ETFs With Strong, Double-Digit TTM Dividend Yield

iShares Emerging Markets Dividend ETF

iShares MSCI Emerging Markets ETF

iShares JP Morgan USD Emerging Markets Bond ETF

Invesco Emerging Markets Sovereign Debt ETF

Invesco DB US Dollar Index Bullish Fund

Falling inflation in many developing economies, cheaper valuation and higher yields may boost some emerging markets ETFs.

Time for Beaten-Down Emerging Markets ETFs?

SDEM is a high-yield ETF invested in emerging market stocks. Over one-third of asset value is exposed to geopolitical and regulatory risks related to China.

SDEM: High Yield With 3 Red Flags

Emerging markets (EM) have definitely seen better days in terms of price appreciation. Still, as far as fixed income yields go, EM offers some of the best opportunities around as long as investors are willing to accept the risks.

Despite Headwinds, This Emerging Markets ETF Offers High Yield

Emerging markets (EM) face their fair share of headwinds given rising global inflation paired with a strong dollar. However, if investors are willing to take on the risk, they could offer supercharged fixed income options.

Supercharge Dividend Income With This Emerging Markets ETF

SDEM has a ~10.6% TTM dividend yield, which makes it attractive to income investors. I believe we are at a tipping point for global growth and emerging markets aren't going to be spared.

SDEM: Past Performance Is Concerning

SDEM is an emerging markets high-yield equity index ETF. It offers investors a strong, growing 8.1% yield. Risks abound.

SDEM: Emerging Markets Index ETF, Strong 8.1% Yield, Growing Dividends, Cheap Valuation

Apple

AbbVie

Abbott Labs

BlackRock

Amplify CWP Dividend & Option Income ETF

Domino's Pizza

Cohen & Steers Closed-End Opportunity Fund

Home Depot

JPMorgan Chase & Co

Mastercard

Medtronic

Global X MLP ETF

Altria

Microsoft

NIKE

Realty Income Corp

Pacer Metaurus US Large Cap Target Dividend 400 ETF

Invesco NASDAQ Next Gen 100 ETF

Invesco Nasdaq 100 ETF

iShares Mortgage Real Estate ETF

Starbucks

Schwab US Dividend Equity ETF

Schwab Strategic Trust-Schwab International Dividend Equity ETF

The portfolio generated $1,067 in dividends during the month, an improvement over August. YTD, I've received $12,700. I closed out my positions in REM, DIS, MLPA, and SPYD.

My Dividend Growth Portfolio November Update: 27 Holdings, 7 Buys, 4 Sells

SDEM strategy and portfolio. Past performance vs. competitors.

SDEM: A High Yield With 3 Red Flags

The relative differential between EM and DM growth is poised to pick up over the next few quarters. Commodity-heavy EMs could serve as a useful hedge during elevated inflationary periods, although that correlation has dimmed in recent months.

SDEM: Yes And No

With SDEM, an investor can gain exposure to established top dividend payers from China, South Africa, Hong Kong, Russia, Brazil, the UAE, India, Malaysia, Thailand, South Korea, and Egypt. SDEM's overweight position in financials (over 32% share of the net assets) is quite typical for EM-focused dividend ETFs - see the examples of DVYE or DEM.

Yield Hunters Should Take A Look At SDEM

Emerging market equities are trading at historically low prices and valuations. DVYE and SDEM focus on emerging markets equities with high dividend yields.

DVYE And SDEM: Emerging Market Equity ETFs With Strong 6.5%-7.9% Dividend Yields

Direxion Daily Gold Miners Index Bear 2X Shares

iShares Core S&P Mid-Cap ETF

iShares Core S&P 500 ETF

SPDR Bloomberg High Yield Bond ETF

SPDR S&P Bank ETF

Direxion Daily S&P Biotech Bull 3X Shares

Direxion Daily Gold Miners Index Bull 2X Shares

VanEck Preferred Securities ex Financials ETF

Invesco Aerospace & Defense ETF

Invesco S&P 500 High Dividend Low Volatility ETF

The 10 best index funds are a mix of buy-and-hold ETFs that will serve you for decades, as well as a couple tactical trading tools.

The 10 Best Index Funds to Buy and Hold

WisdomTree Emerging Markets High Dividend Fund

Pacer Emerging Markets Cash Cows 100 ETF

Schwab Fundamental Emerging Markets Large Co. Index ETF

Invesco RAFI Strategic Emerging Markets ETF

KraneShares MSCI One Belt One Road Index ETF

Emerging markets had a bloodbath in January. Inside the worst-performing emerging funds.

News for Global X MSCI SuperDividend Emerging Markets ETF ETF (SDEM)