ETF Trends
ETF Trends

Prominent money manager Legg Mason plans to dip into the exchange traded fund market, testing the waters with a passively managed income-oriented ETF.

According to an SEC filing, the company outlined its initial plans for a Legg Mason Global Income ETF, which will try to reflect the performance of the Global Income Index.

The ETF will hold securities with both high and sustainable yields. The index provider will select securities based on dividend yield, amount of free cash flow, pay out ratios other dividend sustainability criteria and dividend payment history.

The underlying index will hold about 400 to 600 securities from the top 85% market capitalization of equities in the Global Developed Market Universe and will be rebalanced quarterly.

Joe Morris for Ignites notes that additional products in Legg Mason’s passively managed ETF suite could track global, international and domestic equities and fixed-income securities, along with a blend of international and domestic equities and fixed-income assets.

For more information on the ETF industry, visit our current affairs category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.