Global X Funds, the New York-based fund provider known for its niche strategies, filed paperwork with U.S. regulators to market three ETFs that strive to serve up outsized income at a time when investors have been struggling to find yields in markets characterized by low yields and high volatility.
Global X’s funds would go head-to-head with a growing lineup of super-charged income-producing ETFs from providers such as Emerging Global Advisors, iShares, Invesco PowerShares and State Street Global Advisors, to name a few.
Global X itself launched six months ago a super dividend ETF, the Global X SuperDividend ETF (NYSEArca: SDIV), which canvasses the universe of dividend-yielding stocks globally, cherry-picking the ones with the highest payouts in an equally weighted portfolio. SDIV has gathered $34 million and costs 0.79 percent.
Fund providers are catering to growing investor demand for ETFs that deliver income at a time when an uncertain economic outlook for much of the developed world has fueled volatility and affected portfolio returns. Also, Treasurys are delivering some of their lowest yields in decades.
Global X didn’t disclose tickers and fees. The funds, and their underlying strategies, are:
- Global X SuperIncome ETF, which will own a diverse basket comprising high-income securities from various asset classes such as equities, real estate, master limited partnerships, preferred stock and fixed income. It will tap into both the developed and developing markets. It will track a Solactive benchmark managed by Germany’s Structured Solutions AG through representative sampling, and be global in scope.
- Global X SuperIncome Preferred ETF, which will track the S&P High Yield Preferred Stock Index, and focus on U.S.-listed preferred stocks, or those that pay a set dividend and take precedence over common stocks in the event of a company’s liquidation. The portfolio will include everything from floating- and fixed-rate preferreds, to perpetual preferred stocks with a callable or conversion feature.
- Global X SuperIncome REIT ETF, which will track a Solactive index through representative sampling and invest in the highest-yielding REITs globally.