Global X Super Dividend ETF (NYSEArca: SDIV) has lowered its expense ratio to 0.58% from 1.14%.

The fund’s manager, Global  X, was able to lower the overall fee after getting rid of business development companies in the ETF’s portfolio, IndexUniverse reports. That allows the ETF to avoid paying acquired fund fees, according to the report.

“When we launched the fund, the acquired fund fees from the BDCs [business development companies] were estimations, and after the accounting period, they went up,” a Global X official told IndexUniverse.

“The Global X management fee was always at 58 basis points,” the official said.

SDIV pays a 30-day SEC yield of 7.7%. [ETF Spotlight: Global X Super Dividend]

The ETF has posted a total return of 14.5% year to date.

“Similar funds include First Trust Dow Jones Global Select Dividend (NYSEArca: FGD) and Guggenheim S&P Global Dividend Opportunities Index (NYSEArca: LVL) — both carry expense ratios of 0.60%,” Morningstar says in an analyst report on SDIV.

A “fee war” appears to be shaping up in the ETF business. BlackRock, the largest ETF manager, this week said it plans to reduce expense ratios on some iShares funds. [iShares to Cut Some ETF Fees]

Global X Super Dividend ETF

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