Paris-headquartered Lyxor has launched a pair of smart beta income ETFs – the Lyxor FTSE UK Quality Low Vol Dividend (DR) Ucits ETF and the Lyxor FTSE US Quality Low Vol Dividend (DR) Ucits ETF – with a total expense ratio of 0.19%.
Lyxor claims to have lowest cost on smart beta ETFs in Europe.
Stocks with the highest scores for quality, low volatility and yield factors are selected by the FTSE Russell indices in the two ETFs.
The UK version holds 112 stocks and yielded at 3.63% as of end May 2017 whilst the US version consists of a portfolio of 150 stocks yielding 2.94% as at 31 May 2017. Stocks are capped at 5% for diversification purposes.
Francois Millet, head of Product Line Management – ETFs & Indexing at Lyxor said: “Investors shouldn’t have to compromise quality for yield, or over pay for their equity income.”
Lyxor had €116.4bn of assets under management as of May 2017 of which €1.2bn were managed in its flashing smart beta income strategy, Lyxor’s Global Quality Income ETF.