##  [# Daily ETF Watch: ‘Yieldco’ Funds Planned](/sections/daily-etf-watch/daily-etf-watch-yieldco-funds-planned) 

 

# Daily ETF Watch: ‘Yieldco’ Funds Planned

 

 

Global X plans a lineup of three funds targeting a high-yield asset class for the first time.



 

 

 

 

 [![HeatherBell_green_bg](/sites/default/files/styles/author_image_icon/public/2023-03/heather2.png?itok=5J9vBlda)](/contributors/heather-bell) 

[By Heather Bell](/contributors/heather-bell)

 Apr 07, 2015

 Edited by: Heather Bell

 

 

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Global X, the purveyor of the income-focused SuperDividend ETF family, is breaking new ground in another pocket of the high-yield space with what it is calling [“yieldco ETFs.”](https://www.sec.gov/Archives/edgar/data/1432353/000162828015002160/yieldco-33015.htm)

New York-based Global X said in a [regulatory filing this week](https://www.sec.gov/Archives/edgar/data/1432353/000162828015002160/yieldco-33015.htm) that its “yieldcos” will be publicly listed individual securities that are spun off from a parent company. It said in the filing that a yieldco’s operations tend to represent the parent company’s reliable cash flows from established businesses, separate from more speculative and higher-risk areas of operation. The assets owned by a yieldco tend to be in the area of renewable energy infrastructure, especially wind and solar energy.

Income-hungry investors may find yieldcos alluring, because, like MLPs and REITs, they pay high dividends. The funds’ prospectus describes yieldcos as “dividend growth-oriented,” and notes that the funds will invest in existing yieldcos as well as companies that are planning to spin off a yieldco via an initial public offering.

The three funds described in the filing include:

- Global X Yieldco Index ETF
- Global X US Yieldco Index ETF
- Global X International Yieldco ETF

It’s not clear from the initial prospectus what the precise differences between the funds are. The U.S. fund will invest in securities that are listed on a U.S. exchange or domiciled in the U.S.; in contrast, the other two funds both include “ADR/GDR Risk” and “Foreign Security Risk” among their principal risks.

Presumably the Global X Yieldco Index ETF will invest in the U.S. and in foreign countries, while the Global X International Yieldco ETF will invest in non-U.S. securities only.

The filing did not provide expense ratios, tickers or listing exchanges.



 

 

 [ Heather Bell ](/contributors/heather-bell) 

 

 

  Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a…   [View Bio](/contributors/heather-bell)

 



 

 


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