Despite market buzz that dividend-paying stocks are nearing bubble-like proportions, investor demand keeps driving Global X Funds to create new income-producing exchange traded funds (ETFs), the company's chief executive said Monday at a New York Stock Exchange bell-ringing ceremony.
Global X Funds CEO Bruno del Ama (left) reported that within weeks of the Global X SuperDividend ETF (SDIV) passing its one-year anniversary of trading on the NYSE Arca on June 9, the fund's net assets doubled to $93 million. SDIV was the third most traded ETF on the first day of trading out of 161 fund launches in the first half of 2011, according to Bloomberg. As of July 31, SDIV's 12-month yield is 7.56%.
Yet another income-producing ETF was launched by Global X this July, the Global X SuperIncome Preferred ETF (SPFF), which is designed to track 50 of the highest-yielding preferred securities in North America.
"The dividend-paying companies do outperform over a number of environments," del Ama said at a breakfast before the NYSE bell-ringing.
