Expanding on its dividend theme, Global X Funds launched a new ETF that selects quality dividend payers taken out of the S&P 500.

On Tuesday, Global X rolled out the Global X S&P 500 Quality Dividend ETF (Cboe: QDIV), which has a 0.35% expense ratio.

The Global X S&P 500 Quality Dividend ETF tries to reflect the performance of the S&P 500 Quality High Dividend Index, which is comprised of the top S&P 500 companies that exhibit high quality and dividend yield characteristics and equally weighted. Each company’s quality score is derived from its return-on-equity, accruals ratio, and financial leverage ratio.

“For Q2 2018 alone, S&P 500 companies issued a record $111.6 billion in dividends, and 216 of its components increased their cash payments by 13.55 percent on average,” Vinit Srivastava, Managing Director, Product Management at S&P Dow Jones Indices, said in a note. “As dividends reach record levels, a need for equity income can be combined with a selection of the higher-quality companies issuing those dividends, which the S&P 500 Quality High Dividend Index can provide.”

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A Quality Screen With Dividend Yield

Combining a quality screen with dividend yield, the ETF aims to provide access to companies that are more likely to sustain dividends throughout various economic environments.