Global X ETFs expands preferred stock and Catholic values offerings
Global X ETFs, a New York-based provider of exchange-traded funds (ETFs), has launched the Global X Variable Rate Preferred ETF (PFFV), and the Global X Catholic Values Developed ex-US ETF (CEFA).
These funds will grow the investment solutions available to investors in existing suites of Global X ETFs.
Through PFFV, investors can efficiently access the traditionally shorter-duration variable rate segment of the preferred stock space. Variable rate preferreds can include securities that offer fixed-to-floating rate coupons or those that offer floating rate coupons for the entire life of the issuance. By allocating to securities with variable coupon payments, investors may utilise PFFV to lower the duration, or interest rate risk, of their portfolios, while potentially achieving the higher yields typically associated with the preferred stock asset class. PFFV comes with an expense ratio of 0.25 per cent, which is half the industry average.
CEFA expands Global X’s offering of Catholic-aligned investments alongside the existing S&P 500 Catholic Values ETF (CATH). Both funds track S&P indexes and are constructed in accordance with the US Conference of Catholic Bishops (USCCB) investment guidelines, allowing investors to align their investments with their religious beliefs. CEFA aims to closely mirror broad international equity markets, but with screens to remove companies involved in activities that do not adhere to the USCCB’s guidelines. CEFA comes with an expense ratio of 0.35 per cent.
Alex Ashby, head of product development at Global X ETFs, adds: “We were thrilled to see the strong reception to our existing preferred stock and Catholic values ETFs and are excited to introduce PFFV and CEFA to further develop those fund suites. At Global X, we strive to continually provide investors with a range of tools that can help them efficiently attain their investment goals, whether that is diversifying one’s sources of income or aligning one’s investments with their personal beliefs.”
Global X’s suite of preferred stock ETFs has more than USD900 million in assets under management, as of June 18, 2020, spread between the low cost US Preferred ETF (PFFD) and the high yielding SuperIncome Preferred ETF (SPFF). Joining this suite, PFFV will track the ICE US Variable Rate Preferred Securities Index. CEFA joins the S&P 500 Catholic Values ETF (CATH) as the firm’s two religious values-focused ETFs. CEFA will track the S&P Developed ex-US Catholic Values Index.