SDEM offers an equal-weighted alternative to the emerging market high-dividend-yield space. The fund holds the 50 highest-yielding stocks after screening for consistent dividends over the year (or, if per-share dividends have decreased somewhat, that the payout ratio has not decreased). The fund also screens out stocks at the very bottom of price performance in an attempt to weed out stocks with high yield driven by falling prices. SDEM`s equal weighting typically produces a portfolio with a bias toward smaller firms. To achieve diversification, country and sector exposure are each capped at 35%. The index is rebalanced on a quarterly basis starting each February. Prior to Nov. 16, 2016, the funds name is Global X SuperDividend Emerging Markets ETF and tracked the INDXX SuperDividend Emerging Markets Index, which excluded South Korea and Taiwan.
