Additionally, Global Beta Advisors LLC, the Fund’s investment adviser, has agreed to waive the management fee payable by the Fund to the Adviser through June 30, 2020. The gross expense ratio is 0.49%, and the net expense ratio is .29%. Global Beta Advisors has agreed to reimburse the Fund through March 31, 2021, for the compensation and expenses of the Trustees who are not interested persons, and fees and costs of counsel to the Independent Trustees, except for any litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Independent Trustees with respect thereto), and extraordinary or non-routine fees or expenses.
GBDV’s Effect On A Portfolio
GBDV is aimed and designed to provide exposure to dividend-paying stocks within the S&P 900, with the highest average 12-month trailing dividend yield over each of the prior four quarters. It seeks to provide low-cost broad market exposure to Domestic Large and Mid-Cap Companies from S&P Indexes
Also important is GBDV’s design working to provide broad diversification across sectors and aims to identify companies with historically strong dividends. And lastly, it can be used with a core portfolio to seek income
The GBDV Index Strategy
The Global Beta Smart Income ETF tracks the Global Beta Smart Income Index in an eﬀort to provide attractive income. Global Beta Advisor’s (”GBA”) partnered with S&P to provide an initial index universe for GBA to apply its methodology. GBA believes that S&P is a best-in-class index provider, such that GBA’s starting universe is already vetted for criteria such as liquidity and quality.
The index is designed to reﬂect the performance of constituents from the S&P 900 with the highest average 12-month trailing dividend yield over each of the prior four quarters, diversiﬁed by Global Industry Classiﬁcation Standard (”GICS”) sector and re-weighted based on revenue. To mitigate concentration risk at the issuer level, GBA caps each index constituent at 5% during each quarterly rebalance.
Additionally, GBA will monitor the securities to detect any expected dividend cuts. Once a stock announces a dividend cut, it will be immediately removed from the index. GBA’s mission is to deliver a strategy that seeks to provide our investors with an active line of quarterly income potential and to avoid investment hazards that may come with investors chasing yield.