Global X Files Plans For High Payout/Low Volatility ETF
Global X Funds, the New York-based ETF sponsor know for its suite of emerging markets and commodities funds, could expand its income-oriented lineup with the introduction of the Global X Super Dividend U.S. ETF. The firm has filed plans for that ETF with the Securities and Exchange, Index Universe reported.
The ETF, assuming it comes to market, will track the INDXX SuperDividend U.S. Low Volatility Index and trade on the New York Stock Exchange. A ticker and expense ratio were not included in the filing.
The index tracks the performance of equally weighted common stocks, MLPs and REITs that rank among the highest dividend yielding equity securities in the United States, as defined by, according to the filing.
As dividend and low volatility ETFs have soared in popularity, some providers have combined the two themes into single funds. Just two weeks ago, Invesco's (NYSE: IVZ) PowerShares arm introduced the PowerShares S&P 500 High Dividend Portfolio (NYSE: SPHD). SPHD has already accumulated nearly $10 million in assets under management.
For its part, Global X has already had success with equal-weight dividend funds that offer exposure to more than just common stocks. The Global X Super Dividend ETF (NYSE: SDIV) surpassed $100 million in AUM in late August and today has over $161 million in assets. SDIV has a 30-day SEC yield of 7.72 percent, according to Global X data.
Including SDIV, Global X has introduced four income-oriented ETFs since 2011. The others are the Global X Canada Preferred ETF (NYSE: CNPF), the Global X MLP ETF (NYSE: MLPA) and the Global X SuperIncome Preferred ETF (NYSE: SPFF). SPFF debuted in July and has almost $5.3 million in AUM.
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