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Global X SuperDividend U.S. ETF DIV highlights shift away from covered calls
DIV, a dividend-focused ETF, targets high-yield U.S. stocks with a low-volatility screen, and carries a 6.3% yield versus the S&P 500 at about 1%.
Yahoo Finance highlights the Global X SuperDividend U.S. ETF (DIV) as a candidate to rotate into from covered call ETFs including JEPI, DIVO, and XYLD, arguing that dividend stocks have lagged in a market dominated by artificial intelligence themes.
The article says DIV is a 13-year-old fund that aims to hold the highest-yielding U.S. stocks while applying a low-volatility overlay in its research process. It also notes the ETF has nearly $800 million in assets and an equity portfolio of about 50 stocks that trades at roughly 12.5x trailing 12-month earnings, with a beta described as at the very low end for equity ETFs.
On income, Yahoo Finance reports a dividend yield of 6.3% for DIV, compared with the S&P 500 Index yielding closer to 1%. It also describes the holdings mix as including a large weight in pipeline and other energy transportation stocks, with additional exposure to consumer stocks, REITs, and MLP energy names.
The piece contrasts the approach with covered call strategies, saying they can cap upside through call-writing and related structures such as at-the-money calls on the S&P 500 or out-of-the-money call writing and equity-linked notes that may limit gains during strong rebounds in underlying equities.
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