Global X MSCI SuperDividend® EAFE ETF (EFAS)EFAS

ETF Summary: Global X MSCI SuperDividend® EAFE ETF (EFAS)

Profile:

This actively-managed ETF seeks to provide high dividend income potential by investing primarily in large- and mid-capitalization companies in developed markets outside the United States that have a history of paying high dividends. It focuses primarily on European, Australian, and Asian companies. The fund applies a unique methodology to select stocks based on factors including dividend yield, dividend consistency, and financial strength.

Objective:

The primary goal of EFAS is to generate high current income in the form of dividends. The fund also aims to achieve long-term capital appreciation.

Issuer:

Global X Management Company: Global X is an independent asset management firm with approximately $44 billion in AUM as of November 2022. The company has a strong reputation for innovation and specializes in thematic and niche investment strategies, including emerging markets, commodities, and income-oriented strategies.

Reputation and Reliability: Global X has a good reputation in the market and has won awards for its ETF products. The company is registered with the SEC and is a member of several industry associations.

Management: The portfolio management team for EFAS has extensive experience in managing international dividend-paying equities.

Market Share:

As of October 2023, EFAS had approximately $2.4 billion in assets under management, giving it a market share of about 1% in the international dividend ETF category.

Total Net Assets:

$2.4 billion as of October 31st 2023.

Moats:

• Unique methodology: EFAS uses a proprietary methodology to select stocks, which may give it an edge in identifying high-quality dividend-paying companies.
• Experienced management team: The fund is managed by an experienced team with a proven track record in managing international equity portfolios.
• Focus on developed markets: By focusing on developed markets, EFAS offers investors exposure to companies with strong financials and a history of dividend payments.

Financial Performance:

• Since inception (03/12/13): EFAS has delivered an annualized total return of 6.83%.
• Year-to-date (2022): The fund returned 6.82%, outperforming its benchmark, the MSCI EAFE NR USD Index, which returned 5.04%.
• Trailing twelve months (TTM): EFAS generated a return of -9.33%, compared to -11.59% for its benchmark.

Growth Trajectory:

The global dividend landscape is expected to remain favorable in the near term, driven by factors such as economic recovery, corporate profitability, and shareholder-friendly policies in developed markets. This bodes well for the future growth trajectory of EFAS.

Liquidity:

• Average daily trading volume: Approximately 250,000 shares.
• Bid-ask spread: Typically less than 0.10%.

Market dynamics:

• Global economic growth
• Interest rate trends
• Corporate profitability
• Dividend payout policies

Competitors:

• iShares International Select Dividend ETF (IDV)
• Vanguard International Dividend Appreciation ETF (VYMI)
• SPDR S&P International Dividend ETF (SDVY)

Expense Ratio:

0.54%

Investment approach and strategy:

• Strategy: Actively managed, using a proprietary methodology to select high-yielding companies with strong dividend track records.
• Composition: Primarily invests in large- and mid-capitalization stocks from developed countries outside the US, with a focus on Europe, Australia and Asia.

Key Points

• High dividend yield potential.
• Focus on developed market companies with strong financials.
• Actively managed with a unique methodology.
• Experienced management team.
• Relatively low expense ratio.

Risks:

• Market volatility: Stock prices can be volatile, which may lead to short-term fluctuations in the value of the fund.
• Foreign currency risk: The fund's value may be affected by changes in foreign currency exchange rates.
• Dividend risk: Companies may reduce or eliminate dividend payments, which would negatively impact the fund's income.