Share-split context: A reverse split was recorded on Dec 20, 2022 with coefficient 0.333333. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

Understanding the Global X SuperDividend REIT ETF (SRET)

What this ETF is trying to do

The Global X SuperDividend REIT ETF (SRET) is an exchange-traded fund that focuses on Real Estate Investment Trusts, often called REITs. These are companies that own and manage different types of property. This specific ETF aims to provide high levels of income to its investors.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return (how much the share price moves) and total return (the share price change plus any cash distributions received).

• Year-to-Date (YTD): The price return is down approximately 11.92%, while the total return is down approximately 5.82%.

• One-Year: The price return is down approximately 10.87%, while the total return is down approximately 2.78%.

• Three-Year: The price return has changed by approximately -1.03%, but the total return is up approximately 27.35%.

It is also important to note that this ETF has a history of a reverse split. In December 2022, multiple old shares were combined into fewer new shares. This caused the quoted per-share price to rise mechanically, but it did not increase the actual value of the investment.

Income and distribution explanation

This ETF is known for its distributions. The current distribution yield is approximately 9.91%. This means the cash distributed is high relative to the current share price of $19.18. These distributions usually happen monthly, with 12 payments recorded over the last year.

However, a high yield can sometimes be misleading. A high distribution yield does not mean an investor earned that same percentage as a total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price is not the same thing as NAV erosion, investors often watch for it.

SRET has an erosion-risk score of 75, which is labeled as "Mild price erosion." This is a measurement of risk, not a guarantee that the fund's value has collapsed.

Top Holdings

The following are some of the top holdings in this ETF (note that this is a partial list):

• Apple Hospitality REIT Inc (4.74%)

• LTC Properties Inc (4.25%)

• Healthcare Realty Trust Inc (4.23%)

• Broadstone Net Lease Inc (4.19%)

• Sabra Health Care REIT Inc (4.17%)

• Getty Realty Corp (4.15%)

Pros

• Provides a high distribution yield.

• Distributions are frequent (usually monthly).

• The three-year total return has been positive.

Cons

• The share price has seen declines in the short term (YTD and one-year).

• There is a "mild" erosion-risk score.

• The ETF has a history of reverse splits.

Beginner takeaway

For new investors, SRET is an example of an ETF that focuses on high cash income. It is important to remember that receiving large cash payments (distributions) does not guarantee that the share price will stay stable. Always look at both the price return and the total return to see the full picture of how an investment is performing.