5 min readBy Ron Koren ETF Insider
GLL VS GDX
Compare the GLL and GDX ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
The issuer of the GBDV ETF, Global Beta Advisors LLC, aims to provide investors with exposure to U.S. companies that offer attractive dividend yields and solid revenue profiles. The GBDV ETF seeks to track the performance of the Target Index, which is composed of equity securities of U.S. companies in the highest quintile of the average twelve-month trailing dividend yield over the prior four quarters within the S&P 900. Additionally, these companies must rank in the top half of their respective Global Industry Classification Standard (GICS®) sector classification. The Target Index uses a unique weighting approach based on revenue, with individual constituents capped at 4.5% during quarterly rebalances. Companies that cut or suspend dividends are promptly removed, and those with a dividend yield below 3.5% are also excluded. Furthermore, energy sector constituents are capped at 3% in the aggregate when crude oil prices fall below their 30-day moving average. As of January 29, 2022, the Target Index comprised 92 securities, and the S&P 900 represents the mid- to large-cap segment of the U.S. equity market. The Fund may employ either a replication or representative sampling strategy to track the Target Index, depending on practical considerations and liquidity constraints. Global Beta Advisors LLC collaborates with S&P Dow Jones Indices LLC, the Index Provider, to develop and maintain the Target Index methodology, ensuring that the GBDV ETF aligns with its investment objectives.
The Global Beta Dividend ETF (GBDV) aims to replicate the performance of the Target Index, composed of equity securities of U.S. companies in the highest quintile of the average twelve-month trailing dividend yield over each of the prior four quarters in the S&P 900, with each constituent capped at 4.5% at each quarterly rebalance. Companies that have cut or suspended dividends are excluded until they reinstate or increase their dividend payments. Additionally, energy sector constituents are capped at 3% in the Target Index when crude oil prices fall below their 30-day moving average. As of January 29, 2022, the Target Index consisted of 92 securities. While GBDV primarily invests in U.S. companies from the Target Index, it may also utilize investments not included in the index to track its performance effectively. The index methodology is developed and administered by S&P Dow Jones Indices LLC in consultation with the Adviser.
Tracking the highest-yield dividend-paying U.S. companies in the S&P 900, the Global Beta Dividend ETF (GBDV) aims to replicate the performance of the Target Index. This index consists of equity securities from the top quintile of the average twelve-month trailing dividend yield over each of the previous four quarters within the S&P 900, with constituents also ranking in the upper half of their respective Global Industry Classification Standard (GICS) sectors. GBDV uses a representative sampling strategy to closely align with the Target Index, weighting constituents based on their revenue, with each individual security capped at 4.5% during quarterly rebalances. Additionally, companies that cut or suspend their dividends may be removed from the index, and energy sector constituents are capped at 3% when the price of crude oil is below its 30-day moving average. As of January 29, 2022, the Target Index comprised 92 securities, offering investors exposure to high-yield dividend stocks while managing risks associated with dividend cuts or suspensions.
The correlation aspect of the Global Beta Dividend ETF (GBDV) is an essential factor for investors looking to understand its behavior in relation to the U.S. equity market. GBDV seeks to track the performance of high-yielding U.S. companies with a focus on dividend yield and revenue-weighted components. Given its dividend-centric approach, GBDV's correlation with the broader market may vary compared to traditional broad-market ETFs like SPY. Studying GBDV's correlations with other assets and sectors can provide insights into its unique risk-return profile, making it a valuable tool for income-focused investors.
The GBDV ETF (GBDV) focuses on U.S. companies with the highest dividend yields and a strong presence in various sectors. The Target Index is composed of equity securities of U.S. companies in the highest quintile of the average twelve-month trailing dividend yield over each of the prior four quarters in the S&P 900. It also considers companies ranking in the top half of their respective Global Industry Classification Standard (GICS®) sector classification. These criteria result in a diverse sector allocation within GBDV, allowing investors to access high-yield dividend stocks across multiple industries. Additionally, the fund employs a weighting methodology based on revenue, with individual index constituents capped at 4.5% at each quarterly rebalance to maintain diversification and mitigate risk.
The exposure characteristic of the Global Beta Dividend ETF (GBDV) highlights its unique investment strategy. GBDV seeks to track the performance of the Target Index, which consists of equity securities of U.S. companies in the highest quintile of the average twelve-month trailing dividend yield over each of the prior four quarters in the S&P 900. Additionally, these companies must rank in the top half of their respective Global Industry Classification Standard (GICS®) sector classification. The constituent securities of the Target Index are further weighted based on their revenue, with each individual index constituent capped at 4.5% at each quarterly rebalance. Notably, any company that cuts or suspends its dividend is promptly removed from the Target Index until it increases or reinstitutes its dividend. Furthermore, the energy sector''s weight in the Target Index is capped at 3% when the price of crude oil falls below its 30-day moving average. As of January 29, 2022, the Target Index comprised 92 securities.
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5 min readCompare the GLL and GDX ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
5 min readThe GBDV ETF is a specialized investment fund that focuses on global companies in the relevant sectors. This exchange-traded fund offers investors exposure to a diverse range of innovative and cutting-edge companies engaged in advancements in the industry. Discover the potential growth opportunities and risks associated with investing in this dynamic sector through the GBDV ETF.
4 min readCompare the RING and SGOL ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies to see how they stack up against each other. Whether you're a seasoned investor or just getting started, our comparison provides valuable insights to guide your investment decisions.
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