NEW YORK, March 4, 2013 /PRNewswire/ -- Global X Funds, a
New York sponsor of innovative
exchange traded funds (ETFs) is pleased to announce the results of
its new study examining the performance and relative volatility of
high dividend-paying stocks over time. According to the new
research, dividend-paying stocks outperformed non-dividend payers,
while higher yielding companies generally provided higher
risk-adjusted returns.
(Logo:
http://photos.prnewswire.com/prnh/20120927/NY82509LOGO)
The firm's new research paper, "High Dividends: Myth vs.
Reality," provides new research on volatility and addresses common
misconceptions surrounding high dividend-paying stocks. It can be
accessed via the firm's website here.
According to the study, when tested against a number of risk
factors, dividend-paying stocks repeatedly outperformed
non-dividend payers over a time period of ten years. The study also
examines relative performance of very high dividend-paying stocks,
in the 10%-17% range, and showed this group often outperformed
relative to equities with lower dividends.
"Conventional wisdom holds that higher dividends mean lower
performance, but our research shows the exact opposite," said
Bruno del Ama, CEO of Global X
Funds. "We wanted to tackle the issue of dividends head on, and
demonstrate to investors that high-yielding global dividend stocks
may be an important part of a portfolio."
The study found that, even in bear markets, dividend stocks
proved to be less volatile than non-dividend payers. This lower
risk factor, combined with the historical outperformance of high
dividend-payers and limited investment options for these companies,
guided Global X in the creation of its SuperDividend ETF (SDIV),
which launched in June 2011.
The Fund currently has more than $350
million in assets. SDIV's fund basket consists of 100
equal-weighted companies that rank amongst the highest
dividend-paying equity securities across global markets.
IndexUniverse named SDIV as one of its Top 5 ETF picks for
2013.*
"Given this sustained low-interest rate environment we find
ourselves in, investors need to find creative ways to obtain yield
across new asset classes. Our SuperDividend ETF provides investors
with access to a class of dividend payers that have been
traditionally untapped," said Mr. del
Ama.
ABOUT GLOBAL X FUNDS
Global X Funds is a New York-based provider of exchange-traded
funds that facilitates access to investment opportunities across
the global markets. With $1.7 billion
in managed assets and over 100,000 investors from more than 100
countries as of February 25, 2013,
Global X Funds currently offers exchange-traded funds that target
Commodity Producers, International, Alternatives, Industry, Income,
and Asset Allocation fund suites. For more information, please
visit www.globalxfunds.com.
DISCLOSURE
To receive a distribution, you must be a
registered shareholder of the fund on the record date.
Distributions are paid to shareholders on the payment date.
There is no guarantee that capital gains distributions will not be
made in the future. Your own trading will also generate tax
consequences and transaction expenses. Past distributions are not
indicative of future distributions. Please consult your tax
professional or financial adviser for more information regarding
your tax situation.
Investing involves risk, including the possible loss of
principal. International investing may involve risk of capital loss
from unfavorable fluctuations in currency values, from differences
in generally accepted accounting principles, or from economic or
political instability in other nations. Emerging markets involve
heightened risks related to the same factors as well as increased
volatility and lower trading volume. Narrowly focused
investments may be subject to higher volatility.High yielding
stocks are often speculative, high risk investments. These
companies can be paying out more than they can support and may
reduce their dividends or stop paying dividends at any time, which
could have a material adverse effect on the stock price of these
companies and the Fund's performance. Increasing dividend
yield may be indicative of decreasing value of the underlying
holdings.
Carefully consider the Funds' investment objectives, risk
factors, charges, and expenses before investing. This and
additional information can be found in the Funds' prospectus, which
may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by
visiting www.globalxfunds.com. Read the prospectus carefully before
investing.
Global X Management Company, LLC serves as an advisor to the
Global X Funds. The Funds are distributed by SEI Investments
Distribution Co., which is not affiliated with Global X Management
Company or any of its affiliates.
*Based on what IndexUniverse President of ETF Analytics
Matt Hougan said in a recent
appearance on CNBC on 1/13/13:
http://www.indexuniverse.com/sections/features/15781-hougan-on-cnbc-top-5-etf-picks-for-2013.html
SOURCE Global X Funds
