1. What does the ZYUS ETF do for investors?
The Global X ZYUS ETF provides investors with exposure to a portfolio of 50 high-yielding companies from the S&P 500.
Investors might use ZYUS to gain exposure to dividend paying US companies, selected based on diversification, volatility and tradability requirements. This ETF aims to track the performance of the S&P 500 Low Volatility High Dividend Index.
2. Funds under management (FUM)
The Global X ZYUS ETF had $79.57 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as Global X, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
3. Don’t forget about the fees & costs
Global X charges investors a yearly management fee of 0.35% for the ZYUS ETF. This means that if you invested $2,000 in ZYUS for a full year, you could expect to pay management fees of around $7.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Now what?
These are just a few of the considerations or factors you would need to look at when running the rule over the ZYUS ETF. Before you go any further, take a look at our free Global X ZYUS report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.
