Global X SuperDividend U.S. ETF (NYSEMKT: DIV) and SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) both have a similar goal of buying high-yield stocks. However, they go about the effort in a slightly different way.
Is SPDR Portfolio S&P 500 High Dividend ETF’s 4.1% yield a better bet than Global X SuperDividend U.S. ETF’s 5.4% yield?
SPDR Portfolio S&P 500 High Dividend ETF is incredibly simple to understand. It starts by looking at only the dividend-paying stocks within the S&P 500 (SNPINDEX: ^GSPC), which is a curated list of generally large companies meant to represent the broader U.S. economy. The dividend payers are lined up by dividend yield, from highest to lowest.
The 80 highest-yielding stocks get put into the ETF using an equal-weighting methodology, so that each stock has the same impact on overall performance. Aside from the equal-weighting bit, this…
