The Global X | JPMorgan Efficiente Index ETF also charges 0.86% per year. Like SCTO, EFFE employs the ETF of ETFs approach.
EFFE’s five holdings, which range in weight from 19.2% to 20.6%, are the Vanguard REIT ETF (NYSEArca: VNQ), iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT), Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO),Vanguard S&P 500 ETF (NYSEArca: VOO) and the iShares J.P. Morgan USD Emerging Markets Bond ETF (NYSEArca: EMB).
“We regularly hear about the need for investment vehicles that manage downside risk,” said Global X Vice Executive Vice President Greg King in a statement. “With these new funds, we can now offer two potential solutions to investors who want the liquidity and transparency of an ETF wrapper and a rules-based index approach.”
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of EMB and TLT.