Global X Plans Super Dividend U.S. ETF, Van Eck Files For Defaulted Bond Fund

by on November 9, 2012 | ETFs Mentioned:

Volatility levels are through the roof once more on Wall Street as investors have digested one major development after another this week. Post-election profit-taking pressures swooped in without warning as many pulled out of equity markets with the looming fiscal cliff now in clear sight. Worries over Europe’s debt-burden have also permeated headlines once again, prompting a “risk off” trade in a number of overseas markets as well as at home. Amid the price swings, newcomer Pyxis entered the ETF arena with its Senior Loan ETF, which offers exposure to secured, floating-rate, high yield corporate debt [see Free Report: How To Pick The Right ETF Every Time]. 

Global X filed for an intriguing dividend-focused ETF that looks to be a U.S.-only version of its existing SuperDividend ETF (SDIV):

  • Global X SuperDividend U.S. ETF (DIV): According to the SEC filing, this ETF will look to track the yield and price performance of the INDXX SuperDividend U.S. Low Volatility Index. The underlying portfolio is equal-weighted and consists of U.S. securities including common stocks, MLPs and REITs that have paid dividends consistently over the last two years. Furthermore, similar to its global counterpart, SDIV, this fund will also screen and select securities that exhibit lower volatility relative to the broad stock market [see Monthly Dividend ETFdb Portfolio]. 

Van Eck stuffed the product pipeline with an ETF proposal that also looks to appease the appetite of income-hungry investors:

  • Market Vectors-Altman Defaulted & Distressed Bond ETF: According to the SEC filing, this fund will track a benchmark comprised of defaulted and distressed bonds that trade at no less than a 10% spread over a comparable Treasury security. The portfolio includes below investment-grade rated debt from U.S. and non-U.S. issuers. To clarify, defaulted bonds are bonds which have failed to make timely payments of interest or principal, while distressed bonds are bonds that are issued by ocompanies that are currently, or might be, involved in reorganizations or financial restructurings [see Senior Bank Loans: High-Yield With Perks]. 

Follow me on Twitter @SBojinov

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.