- Joined
- 20 July 2021
- Posts
- 10,993
- Reactions
- 15,253
Change of Index, Name and Fee Reduction for Global X S&P/ASX 300 High Yield Plus ETF
Global X Management (AUS) Limited (“Global X”), the Responsible Entity of the Global X S&P/ASX 300 High Yield
Plus ETF (ASX: ZYAU), an exchange traded fund quoted on the ASX AQUA market (the “Fund”), announces that the
benchmark index of the Fund will be changing following close of trading on the Australian Securities Exchange on 31
July 2023.
The Fund currently aims to provide investors with a return that (before fees and expenses) tracks the performance of
the S&P/ASX 300 Shareholder Yield Index. This index comprises 40 stocks from the S&P/ASX 300 with the highest
shareholder yield, which is defined as the amount of common dividends and common share buybacks in the last
year.
The Fund’s index will change to the S&P/ASX 200 High Dividend Index. The S&P/ASX 200 High Dividend Index is
designed to provide investors with a return of 50 high dividend-yielding companies from the S&P/ASX 200 with a
positive 12-month forecast dividend yield, excluding those companies classified by the Global Industry Classification
Standard (GICS) as REITs and stocks ranked in the bottom 10% by momentum value. The index constituents are
weighted according to forecast dividend yield multiplied by float market cap.
As a result of such a change the Fund’s name will change to the Global X S&P/ASX 200 High Dividend ETF. The
management fee will be reduced from 0.35% to 0.24%. The ASX code will remain as ZYAU.
Summary of Changes
A summary of changes being made to the Fund is as follows:
Current New (Effective following close of ASX
trading on 31 July 2023)
Investment Objective The Fund aims to provide investors with a
return that (before fees and expenses) tracks
the performance of the S&P/ASX 300
Shareholder Yield Index.
The Fund aims to provide investors with a return
that (before fees and expenses) tracks the
performance of the S&P/ASX 200 High Dividend
Index.
Investment Universe
The Index comprised 40 stocks from the
S&P/ASX 300 with the highest shareholder
yield, which is defined as the amount of
common dividends and common share
buybacks in the last year.
The Index is comprised of high dividend yielding
companies from the S&P/ASX 200 with
a positive 12-month forecast dividend yield,
excluding those companies classified by the
Global Industry Classification Standard (GICS)
as REITs and stocks ranked in the bottom 10%
by momentum value.
Notification to Unit Holders
27 June 2023
Market Announcements Office
ASX Limited
115 PITT STREET
9TH FLOOR
SYDNEY, NSW 2000
(61) 2 8311 3488
INFO@GLOBALXETFS.COM.AU
WWW.GLOBALXETFS.COM.AU
Selection Criteria
At each rebalancing, the index selects 40
constituents from the eligible stocks in the index
universe according to the following process:
1) Companies must have a minimum
three-month Average Daily Value
Traded (ADVT) of AUD 1 million as of
the rebalancing reference date in order
to be eligible for index inclusion. At
each rebalancing, current constituents
are considered for deletion if their
three-month ADVT falls below AUD
750,000.
2) Over the observation period,
companies must have Free Cash Flow
to Equity (FCFE) of at least the total
cash paid for common dividends and
common share repurchases.
3) Over the observation period,
companies must have a positive
dividend payout and a non-negative
one-year DPS growth rate to be
eligible for index inclusion. The
dividend amount used in the DPS
growth rate is grossed up to include
the value of franking credits. Current
constituents are considered for
deletion if their decline in DPS growth
is 5% or greater.
4) S&P Dow Jones Indices only
considers cash dividend payments
declared as regular by the paying
company for index eligibility, selection
and weighting purposes. Cash
dividend payments declared as special
by the paying company, including
recurring special cash dividends, are
not considered. For eligibility and
weighting purposes, regular cash
dividend amounts before withholding
tax are used.
At each rebalancing, the index selects 50
constituents from the eligible stocks in the index
universe according to the following process:
1) Rank the eligible stocks in the index
universe by 12-month forecast
dividend yield.
2) Select the highest ranking 50 stocks,
capping the number of stocks selected
from each GICS Sector at 15
a. Automatically select all
securities ranked within the
top 40.
b. Select current constituents
ranked within the top 60 in
rank order, until the target
stock count has been
reached.
c. If at this step the target stock
count is still not satisfied,
select the highest ranked nonconstituents from uncapped
Sectors in rank order until the
target stock count is reached.
Weighting
Constituents are weighted by the product of
their float-adjusted market capitalization and
shareholder yield, subject to single stock cap of
5%. Any excess weight is proportionally
redistributed to all noncapped constituents.
The constituents are weighted by forecast
dividend yield multiplied by free market cap.
Number Of Holdings 40 50
Fund Name Global X S&P/ASX 300 High Yield Plus ETF Global X S&P/ASX 200 High Dividend ETF
ASX Code ZYAU ZYAU
115 PITT STREET
9TH FLOOR
SYDNEY, NSW 2000
(61) 2 8311 3488
INFO@GLOBALXETFS.COM.AU
WWW.GLOBALXETFS.COM.AU
Management Fee 0.35% 0.24%
Supplementary PDS
A Supplementary Product Disclosure Statement updating the Fund’s PDS dated 16 March 2023 has been issued
reflecting these changes and is attached. The Supplementary Product Disclosure Statement can also be found at the
Responsible Entity’s website:
www.globalxetfs.com.au/ZYAU
Effective date of changes
The changes will take effect following close of trading on the Australian Securities Exchange on 31 July 2023.
Rationale for changes
The changes are expected to provide the following benefits to investors:
• Higher dividend yield potential – the new index ranks the eligible universe by forecast dividend yield in
descending order and skews the constituent weightings towards higher dividend players within the eligible
universe.
• Lower transaction costs – the new index historically has significantly less turnover than the current index.
• Low-cost access – the Fund’s management fee is lowered to 0.24%.
Next stages
Investors who wish to remain in the Fund are not required to take any action. Investors who wish to exit the Fund can
do so through the normal channels such as their broker or advisor.
DYOR
i hold ZYAU
while this won't persuade me to sell out of these ( SO FAR , i may need a long look and consider about adding more to the existing holding
Global X Management (AUS) Limited (“Global X”), the Responsible Entity of the Global X S&P/ASX 300 High Yield
Plus ETF (ASX: ZYAU), an exchange traded fund quoted on the ASX AQUA market (the “Fund”), announces that the
benchmark index of the Fund will be changing following close of trading on the Australian Securities Exchange on 31
July 2023.
The Fund currently aims to provide investors with a return that (before fees and expenses) tracks the performance of
the S&P/ASX 300 Shareholder Yield Index. This index comprises 40 stocks from the S&P/ASX 300 with the highest
shareholder yield, which is defined as the amount of common dividends and common share buybacks in the last
year.
The Fund’s index will change to the S&P/ASX 200 High Dividend Index. The S&P/ASX 200 High Dividend Index is
designed to provide investors with a return of 50 high dividend-yielding companies from the S&P/ASX 200 with a
positive 12-month forecast dividend yield, excluding those companies classified by the Global Industry Classification
Standard (GICS) as REITs and stocks ranked in the bottom 10% by momentum value. The index constituents are
weighted according to forecast dividend yield multiplied by float market cap.
As a result of such a change the Fund’s name will change to the Global X S&P/ASX 200 High Dividend ETF. The
management fee will be reduced from 0.35% to 0.24%. The ASX code will remain as ZYAU.
Summary of Changes
A summary of changes being made to the Fund is as follows:
Current New (Effective following close of ASX
trading on 31 July 2023)
Investment Objective The Fund aims to provide investors with a
return that (before fees and expenses) tracks
the performance of the S&P/ASX 300
Shareholder Yield Index.
The Fund aims to provide investors with a return
that (before fees and expenses) tracks the
performance of the S&P/ASX 200 High Dividend
Index.
Investment Universe
The Index comprised 40 stocks from the
S&P/ASX 300 with the highest shareholder
yield, which is defined as the amount of
common dividends and common share
buybacks in the last year.
The Index is comprised of high dividend yielding
companies from the S&P/ASX 200 with
a positive 12-month forecast dividend yield,
excluding those companies classified by the
Global Industry Classification Standard (GICS)
as REITs and stocks ranked in the bottom 10%
by momentum value.
Notification to Unit Holders
27 June 2023
Market Announcements Office
ASX Limited
115 PITT STREET
9TH FLOOR
SYDNEY, NSW 2000
(61) 2 8311 3488
INFO@GLOBALXETFS.COM.AU
WWW.GLOBALXETFS.COM.AU
Selection Criteria
At each rebalancing, the index selects 40
constituents from the eligible stocks in the index
universe according to the following process:
1) Companies must have a minimum
three-month Average Daily Value
Traded (ADVT) of AUD 1 million as of
the rebalancing reference date in order
to be eligible for index inclusion. At
each rebalancing, current constituents
are considered for deletion if their
three-month ADVT falls below AUD
750,000.
2) Over the observation period,
companies must have Free Cash Flow
to Equity (FCFE) of at least the total
cash paid for common dividends and
common share repurchases.
3) Over the observation period,
companies must have a positive
dividend payout and a non-negative
one-year DPS growth rate to be
eligible for index inclusion. The
dividend amount used in the DPS
growth rate is grossed up to include
the value of franking credits. Current
constituents are considered for
deletion if their decline in DPS growth
is 5% or greater.
4) S&P Dow Jones Indices only
considers cash dividend payments
declared as regular by the paying
company for index eligibility, selection
and weighting purposes. Cash
dividend payments declared as special
by the paying company, including
recurring special cash dividends, are
not considered. For eligibility and
weighting purposes, regular cash
dividend amounts before withholding
tax are used.
At each rebalancing, the index selects 50
constituents from the eligible stocks in the index
universe according to the following process:
1) Rank the eligible stocks in the index
universe by 12-month forecast
dividend yield.
2) Select the highest ranking 50 stocks,
capping the number of stocks selected
from each GICS Sector at 15
a. Automatically select all
securities ranked within the
top 40.
b. Select current constituents
ranked within the top 60 in
rank order, until the target
stock count has been
reached.
c. If at this step the target stock
count is still not satisfied,
select the highest ranked nonconstituents from uncapped
Sectors in rank order until the
target stock count is reached.
Weighting
Constituents are weighted by the product of
their float-adjusted market capitalization and
shareholder yield, subject to single stock cap of
5%. Any excess weight is proportionally
redistributed to all noncapped constituents.
The constituents are weighted by forecast
dividend yield multiplied by free market cap.
Number Of Holdings 40 50
Fund Name Global X S&P/ASX 300 High Yield Plus ETF Global X S&P/ASX 200 High Dividend ETF
ASX Code ZYAU ZYAU
115 PITT STREET
9TH FLOOR
SYDNEY, NSW 2000
(61) 2 8311 3488
INFO@GLOBALXETFS.COM.AU
WWW.GLOBALXETFS.COM.AU
Management Fee 0.35% 0.24%
Supplementary PDS
A Supplementary Product Disclosure Statement updating the Fund’s PDS dated 16 March 2023 has been issued
reflecting these changes and is attached. The Supplementary Product Disclosure Statement can also be found at the
Responsible Entity’s website:
www.globalxetfs.com.au/ZYAU
Effective date of changes
The changes will take effect following close of trading on the Australian Securities Exchange on 31 July 2023.
Rationale for changes
The changes are expected to provide the following benefits to investors:
• Higher dividend yield potential – the new index ranks the eligible universe by forecast dividend yield in
descending order and skews the constituent weightings towards higher dividend players within the eligible
universe.
• Lower transaction costs – the new index historically has significantly less turnover than the current index.
• Low-cost access – the Fund’s management fee is lowered to 0.24%.
Next stages
Investors who wish to remain in the Fund are not required to take any action. Investors who wish to exit the Fund can
do so through the normal channels such as their broker or advisor.
DYOR
i hold ZYAU
while this won't persuade me to sell out of these ( SO FAR , i may need a long look and consider about adding more to the existing holding
