DIVI ISSUER
The issuer of the DIVI ETF is dedicated to providing investors with exposure to a systematic, rules-based proprietary index. Under normal market conditions, the fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index is constructed through an optimization process that aims to deliver a higher dividend yield than the Parent Index, while limiting expected error to the Parent Index. This Core Dividend Tilt Index includes large- and mid-capitalization stocks from developed markets excluding North America, providing a unique investment opportunity for those seeking a dividend-focused approach with diversification. As of May 31, 2023, the Underlying Index consisted of 549 securities from various countries, reflecting a broad spectrum of global investment opportunities. The ETF employs a passive indexing approach, replicating the Underlying Index's component securities to closely correspond to its performance, offering investors a cost-effective and efficient way to access this dividend-focused investment strategy.
DIVI DIVIDEND
The DIVI Dividend ETF prioritizes dividend income by tracking an index of high-yielding stocks. Investors seeking regular dividend payouts often turn to this ETF. Dividend eligibility for the constituent stocks is determined based on their track record of consistent and reliable dividend payments. DIVI distributes dividends on a quarterly basis, adhering to a well-defined schedule. The dividend policies of the underlying stocks play a pivotal role in shaping the ETF's overall distribution. This ETF is favored by income-focused investors looking to enhance their portfolio's income stream.
DIVI TRACKING
Tracking the Dividend Core Select ETF's strategy involves closely following the proprietary Dividend Core Select Index, which is maintained and calculated by Morningstar, Inc. Under normal market conditions, the fund invests at least 80% of its assets in the component securities of the Dividend Core Select Index and in depositary receipts representing such securities. This systematic, rules-based index aims to deliver a higher dividend yield than its parent index, the Morningstar® Developed Markets ex-North America Target Market Exposure Index, while limiting expected tracking error. The Dividend Core Select ETF utilizes a passive investment approach and may employ replication or representative sampling strategies to closely correspond to the index's performance. Additionally, the fund may utilize equity futures, equity total return swaps, foreign currency contracts, and currency futures to enhance returns and minimize tracking error while maintaining portfolio diversification.
DIVI CORRELATION
The correlation aspect of the DIVI Global X SuperDividend E.T.F. (DIVI) is essential for investors seeking exposure to high-dividend-yield stocks outside of North America. Under normal market conditions, DIVI invests at least 80% of its assets in component securities of its proprietary index, aiming to deliver a higher dividend yield than its parent index, the Morningstar Developed Markets ex-North America Target Market Exposure Index. This unique dividend-focused strategy may lead to correlations that differ from traditional U.S. equity ETFs. To delve deeper into DIVI's correlations with various asset classes and sectors, investors can leverage the ETF Insider web app, which offers a simple visualization tool to assess overlap and gain valuable insights into portfolio diversification and risk management strategies.
DIVI SECTOR
The Dividend-focused Divi ETF (DIVI) primarily invests in dividend-paying stocks with an emphasis on delivering a higher dividend yield than its benchmark index. The underlying index, based on the Morningstar® Developed Markets ex-North America Target Market Exposure Index, is constructed through a systematic and rules-based approach, aiming to provide a dividend tilt by selecting and weighting securities from the parent index. DIVI concentrates its investments on large- and mid-cap companies in various developed markets, excluding North America. This sector-specific focus allows investors to target dividend income while maintaining exposure to global equity markets.
DIVI EXPOSURE
The specific exposure elements of the DIVI ETF can provide insights into its investment focus, encompassing various markets, regions, and sectors. For a detailed understanding of DIVI's market positioning, investors can turn to the ETF insider tool. This platform offers comprehensive data on every US ETF, ensuring users can easily identify overlaps, correlations, and other essential metrics through a user-friendly visualization interface.
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