NYSEarca:QDIV Strong ETF Offering High Dividend US Equities

NYSEarca:QDIV Strong ETF Offering High Dividend US Equities

Sector Allocation and Robust Performance Make NYSEarca:QDIV High Dividend US Equities a Go-to Choice for Long-term Investors

TradingNEWS Archive 7/30/2023 12:00:00 AM

In the dynamic realm of financial markets, Global X Funds' SuperDividend U.S. ETF, affectionately coined as QDIV, has proven itself as a solid player in the arena of exchange-traded funds. With a nearly 100% commitment to stocks, QDIV paints a diverse canvas across sectors from industrials and consumer defensive to energy and technology. This strategic array of sector allocation provides a smooth sailing experience for investors navigating through the stormy seas of market volatility, providing a calming sense of balance to the pursuit of risk-adjusted returns.

As of the close on July 28, 2023, QDIV has offered its investors a year-to-date daily total return of 4.49%, falling shy of the category average of 10.90%. However, delving deeper into the time horizon, we find QDIV's 1-year and 3-year daily total returns to be 8.01% and 17.12%, respectively. These figures portray a testament to the fund's resilience in delivering a commendable degree of returns to its long-term investors, particularly during the tumultuous times brought about by the global pandemic.

A quick peek into QDIV's valuation ratios uncovers a low price-to-earnings (P/E) ratio of 0.08, price-to-book (P/B) ratio of 0.41, price-to-sales (P/S) ratio of 0.87, and a price-to-cashflow ratio of 0.12. These numbers whisper the possibility of undervaluation, igniting the potential for growth that could provide an unexpected lift to the ETF's holdings.

The QDIV portfolio is no less than an art gallery, showcasing the prowess of industry leaders. The top 10 holdings comprise recognizable names such as Stanley Black & Decker (SWK), Advance Auto Parts (AAP), NetApp Inc. (NTAP), Best Buy (BBY), Fastenal (FAST), Snap (SNAP), Corning Incorporated (GLW), Principal Financial Group (PFG), and Hewlett Packard Enterprise Co (HPE).

Stanley Black & Decker (SWK), an eminent name in the tools and outdoor gear industry, has seen consistent gains and boosted its dividends, indicating a robust financial health. The stock currently trades at around $160, slightly below its 52-week high of $190.

Advance Auto Parts (AAP), despite facing a minor headwind, has delivered solid performance. Trading around $210, the company's stock is about 10% below its 52-week high. The upcoming earnings report might see a slight dip in earnings, but revenue projections depict a modest upswing.

NetApp Inc. (NTAP) maintains a bullish stance from analysts, even amid a minor stake reduction by LSV Asset Management. The stock currently trades at about $80 per share, with room for growth based on analyst estimates.

Best Buy (BBY), the consumer electronics titan, shows a bullish trend, breaking resistance levels and opening potential for further growth. The stock currently trades around $125, displaying a positive upswing in recent sessions.

Fastenal (FAST), despite witnessing a stake reduction by Baillie Gifford & Co., continues to reward shareholders with regular dividends. The stock trades at around $50 per share, close to its 52-week high, reinforcing its stability.

Snap (SNAP) managed to surprise the market with a smaller loss than expected, even with a gloomy future forecast. Trading around $60, the stock is considerably below its 52-week high of $75, but displays potential for a turnaround.

Corning Incorporated (GLW), set to capitalize on the growing AI market, shows an increase in closing price despite a monthly loss in value. Currently, it trades around $45 per share, showing resilience amidst volatility.

Principal Financial Group (PFG), trading at an attractive P/E ratio, positions itself as a value investment. The stock trades at around $75, just below its 52-week high of $80, depicting a healthy financial performance.

Finally, Hewlett Packard Enterprise Co (HPE), despite a minor dip, maintains a positive outlook. The stock is currently trading around $20, providing an attractive entry point for long-term investors.

QDIV also shines in the sphere of expense ratio, holding a low figure of 0.20%, much below the category average of 0.34%. This cost-effective feature is a beacon of attraction for investors, paving the way for potential growth in net returns.

To sum up, QDIV's well-curated portfolio and strong performance illuminate its potential as a lucrative investment choice. The ETF's capability to deliver returns in the face of uncertainties stands as a solid proof of its robust strategy and the paramount importance of diversification. With the ETF's broad range of top holdings, investors can gain a wholesome exposure to different sectors and companies, creating a well-balanced and risk-managed portfolio. As with all investments, investors should weigh their risk tolerance and investment objectives before diving in.