Solactive AG has launched the Solactive Global SuperDividend® REIT Index, designed to follow the stocks of REITs with both a high dividend yield and a low volatility, and used as underlying by the Global X SuperDividend® REIT ETF (SRET).
REITs (Real Estate Investment Trusts) are companies which derive the majority of their income from rents from real property, interest on mortgages financing real property or from sales of real estate. Created in the US in 1960, REITs were designed to provide a real estate investment structure similar to what the mutual funds provide for investment in stocks. REITs receive special tax considerations and typically offer investors significant yields, as well as a highly liquid method of investing in real estate.
Steffen Scheuble, CEO, Solactive, said: “REIT indices have traditionally been structured as benchmark indices. The Solactive Global SuperDividend® REIT Index is the first in the market to offer an alternative, smart beta approach to the REIT sector, via dividend yield and volatility screenings combined with equal-weighting of its components.”
The starting index universe is composed of all REITs listed on a regulated stock exchange, with a market capitalization of at least USD 100 million and a 3 months average daily trading volume of at least USD 5 million. The stocks from the index universe are screened according to two filters:
- The first selection ranks stocks from the index universe according to dividend yield and selects the 60 highest yielding REITs; and
- The second selection ranks those 60 REITs according to volatility over the past 90 days and narrows the selection to the 30 less volatile stocks.
The 30 stocks remaining after those two filters are included in the Solactive Global SuperDividend® REIT Index, and are equally weighted.
Performance since 29th January, 2010
Country breakdown
The Index is reviewed annually in January. The Index components are also screened quarterly for dividend cuts or an overall negative outlook concerning the companies’ dividend policy. Stocks may be excluded on these quarterly reviews and will be replaced with the top ranked stocks from the index universe which are currently not index components.
Published in USD, the Solactive Global SuperDividend® Index is calculated as price return and total return. The Index is based on 100 at the close of trading on 29th January, 2010.
For more information, please visit the Solactive Global SuperDividend® REIT Index webpage.