Legg Mason Crafting Four Smart-Beta, Index-Based ETFs | ETF Trends

Among the growing group of mutual fund providers eyeing the exchange traded fund space, Legg Mason is planning four new smart-beta, index-based ETFs.

According to a recent Securities and Exchange Commission filing, the money manager is working on the Legg Mason Developed ex-US Diversified Core ETF, Legg Mason Emerging Markets Diversified Core ETF, Legg Mason US Diversified Core ETF and Legg Mason Low Volatility High Dividend ETF. No tickers or expense ratios have been provided.

The Legg Mason Developed ex-US Diversified Core ETF underlying index groups components based on geography and sector, combines investment categories with more highly correlated historical performance into smaller number of so-called clusters, and equally weights the clusters.

The Legg Mason Emerging Markets Diversified Core ETF also utilizes a similar weighting technique, except it targets developing economies.

Meanwhile, the Legg Mason US Diversified Core ETF starts off by grouping securities into multiple investment categories based on industries and proceeds to combine the investments into smaller equally weighted clusters.

Lastly, the Legg Mason Low Volatility High Dividend ETF, like the name suggests, targets high dividend yield companies, with a lower price and earnings volatility. Specifically, companies must demonstrate profitability over the pas four fiscal quarters, and stocks whose yields are not supported by earnings are excluded.