Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you're interested in investing in stocks that pay out sizable dividends, the Global X SuperDividend ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Global X ETF's expense ratio -- its annual fee -- is 0.79%, which is higher than many ETFs', but lower than that of the typical stock mutual fund. It's relatively small, too, so if you're thinking of buying, beware of occasionally large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF doesn't have much of a performance record yet, as it's very young. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
The fund is rather small, too, so if you're thinking of buying, beware of occasionally large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
What's in it?
Several big dividend payers have performed extremely well over the past year. PDL BioPharma
Offshore drilling contractor Seadrill
Other dividend payers didn't do as well last year but could improve in the years to come. Health Care REIT Omega Healthcare Investors
The big picture
A well-chosen ETF can grant you instant diversification across any industry or group of companies -- and make investing in and profiting from it that much easier.