Paris-based Lyxor has launched a pair of smart beta income ETFs, which the company claims will be the lowest cost such products in Europe.
The UK version, the Lyxor FTSE UK Quality Low Vol Dividend Ucits ETF, has a portfolio of 112 stocks and a current yield of 3.63%.
The US version holds 150 stocks and yields 2.94%. Stocks are capped at 5% to maintain diversification and both funds have a total expense ratio (TER) of 0.19%.
The new ETFs expand Lyxor’s range to global, European, UK and US equity markets.
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. With a TER of just 0.19% these are the cheapest quality income smart beta ETFs in Europe.”
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