The thought of investing in thematic exchange traded funds (ETFs) doesn’t have to be associated with higher prices if investors know where to look, such as at these three Global X funds.
Getting internationally diversified exposure isn’t tagged with exorbitant expense ratios, especially with the Global X DAX Germany ETF (DAX). DAX seeks to provide investment results that closely correspond generally to the price and yield performance of the DAX® Index, which tracks the segment of the largest and most actively traded companies — known as blue chips — on the German equities market.
Overall, DAX gives investors:
- Efficient access: DAX offers access to 30 of the largest and most liquid publicly traded companies in Germany, spanning a wide range of economic sectors.
- Targeted exposure: The fund provides targeted exposure to Germany, the largest economy in Europe by GDP.
- Low-cost access: A net expense ratio of just 0.20%.
A Pair of Low-Cost Income ETF Options
Fixed income investors looking for yield can opt for low-cost ETFs like the Global X S&P 500 Quality Dividend ETF (QDIV), which comes with a low 0.20% expense ratio. The fund seeks to provide investment results that correspond generally to the price and yield performance of the S&P 500® Quality High Dividend Index, which is designed to provide exposure to U.S. equity securities included in the S&P 500® Index that exhibit high quality and dividend yield characteristics, as determined by Standard & Poor’s Financial Services LLC, the provider of the underlying index.
Overall, QDIV gives investors:
- Quality focus: QDIV invests in companies that score in the top 200 of the S&P 500 based on a variety of quality metrics including return-on-equity, accruals, and financial leverage.
- High income potential: To qualify for QDIV, a company must score in the top 200 of the S&P 500 in dividend yield.
- Monthly distributions: QDIV makes distributions on a monthly basis.
Another ETF income source is preferred dividends using the Global X U.S. Preferred ETF (PFFD). The fund seeks to provide investment results that correspond generally to the price and yield performance of the ICE BofA Diversified Core U.S. Preferred Securities Index, which is designed to track the broad-based performance of the U.S. preferred securities market.
Overall, PFFD offers investors:
- High income potential: PFFD invests in a broad basket of preferred stock in the U.S., an asset class that has historically offered high yield potential.
- Low expense ratio: PFFD’s expense ratio of 0.23% is less than half the competitor average.
- Monthly distributions: PFFD makes distributions on a monthly basis.
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