Daily ETF Watch: More Smart Beta Funds Coming
Global X’s latest filing suggests its multifactor ETFs may be on the way soon.
A recent filing from Global X raises the possibility that it may launch its family of multifactor ETFs sometime quite soon. Four of the five funds outlined in the filing have been assigned tickers and expense ratios.
Those funds, their tickers and expense ratios are as follows:
- Global X Scientific Beta US ETF (SCIU), 0.35 percent, or $35 for each $10,000 invested
- Global X Scientific Beta Europe ETF (SCID), 0.38 percent
- Global X Scientific Beta Japan ETF (SCIJ), 0.38 percent
- Global X Scientific Beta Asia ex-Japan ETF (SCIX), 0.38 percent
The only fund in the filing that has neither a ticker nor an expense ratio is the Global X Scientific Beta Developed Markets ex-US ETF.
The funds track indexes from Edhec’s Scientific Beta unit and target four factors: value, size, low volatility and momentum. Each factor is weighted according to five different weighting approaches that are then averaged for each factor. The five weighting schemes are equal weighting; maximum de-correlation; efficient minimum volatility and efficient maximum Sharpe ratio; and diversified risk-weighted.
In January, ETF Securities launched a pair of ETFs tracking similar indexes from Scientific Beta: the ETFS Diversified-Factor Developed Europe Index Fund (SBEU) and ETFS Diversified-Factor U.S. Large Cap Index Fund (SBUS). Both of those funds come with expense ratios of 0.40 percent.