Daily ETF Watch: More Smart Beta Funds Coming

Global X’s latest filing suggests its multifactor ETFs may be on the way soon.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

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.

 

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 graduate of Dartmouth college and resides in the Denver area with her two dogs.