ETF Watch: Legg Mason Debuts Int’l Low Vol/High Div Fund

New fund is a counterpart to its existing Legg Mason ETF.

Legg Mason today is rolling out an international complement to the $75 million Legg Mason Low Volatility High Dividend ETF (LVHD | C-43) that it launched at the end of last year. The Legg Mason International Low Volatility High Dividend ETF (LVHI) selects its components from non-U.S. developed markets based on their yield and volatility levels. It charges an expense ratio of 0.40%.

LVHI is listed on the Bats Global Markets exchange, which owns ETF.com.

The fund looks to both lower downside risk and provide the income investors are looking for. Its index methodology, provided by Legg Mason affiliate QS Investors, is designed to select only profitable, dividend-paying companies that exhibit lower price volatility and higher-than-average dividend yields, along with consistent earnings, Legg Mason said.

The index also includes a currency hedge to remove the added risk of foreign-currency impacts.

“This ETF seeks to generate attractive levels of income from dividends, create long-term appreciation while addressing equity and currency market volatility and downside risk,” said QS Investors President James Norman, noting that clients had requested an international version of LVHD due to growing global volatility.

Contact Heather Bell at [email protected].