Loading…
Loading…
The Global X S&P 500 Quality Dividend ETF (QDIV) endeavors to mirror the comprehensive financial performance, including both capital growth and income generation, of the S&P 500 Quality High Dividend Index, before any management fees or operating expenses are considered.
Is QDIV's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
As Market Risks Rise, Buy QDIV
APS Management Group Inc. purchased a new stake in shares of Global X S&P 500 Quality Dividend ETF (NYSEARCA:QDIV) in the third quarter, according to the company in its most recent filing with the SEC. The firm purchased 15,718 shares of the company's stock, valued at approximately $553,000. APS Management Group Inc.
QDIV selects S&P 500 Index stocks that rank in the top 200 on both dividend yield and quality, as determined by return on equity, accruals ratio, and leverage. The strategy seems reasonable, but QDIV has only attracted $31 million in assets under management since its launch seven years ago. Its failure to resonate with investors has me curious. I found QDIV's weighting scheme to be the most likely culprit, and based on early reports from Global X, it looks like the decision to equal-weight components was flawed.
On Wednesday, Global X expanded its lineup of ETFs with the launch on the NYSE of two new funds. Both the MLP & Energy Infrastructure Covered Call ETF (MLPD) and the S&P 500 Quality Dividend Covered Call ETF (QDCC) use covered call strategies.
Both QDIV and SCHD invest in large-cap U.S. stocks that pay dividends, but they have different selection criteria and weighting methods, with SCHD having a lower expense ratio and higher dividend yield. QDIV has a lower price-to-earnings ratio and pays dividends monthly, while SCHD pays quarterly; SCHD has realized a higher total return since August 2018. Analysis of the underlying indices of both ETFs shows they outperform the S&P 500, especially during down markets, with QDIV potentially offering higher returns over a 24-year period.