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Global X Space Tech ETF (ASX: MOON) and Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)

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Global X Space Tech ETF (ASX: MOON) and Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)

Hi MM team, thanks for your clear communications and analysis during this unpredictable time. Could you please give your opinion on the new MOON ETF and also ZYAU (for yield) Thanks Trish

Answer

Hi Trish,

Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)  is a low-cost, relatively small ~$100mn passively managed Australian equity income ETF that holds the 50 highest dividend-yielding companies from the S&P/ASX 200, selected on the basis of consensus 12-month forecast dividend yield. The management fee is 0.24% for an ETF that has delivered a return of 14.4% pa over the last 3-years.

Conversely the $7.5bn income-focused Vanguard Australian Shares High Yield ETF (VHY) charges 0.25% and has delivered a return of 15.3% pa over the last 3-years.

  • At this stage we prefer the larger, better performing, VHY ETF.

Global X Space Tech ETF (ASX: MOON) is a brand new $1mn ASX-listed thematic ETF launched this week by Global X, giving Australian investors pure-play exposure to the commercialisation of space.

The elephant in the room for both MOON and RCKT is SpaceX, once it qualifies for relevant indices under Nasdaq’s fast entry rules, SPCX will likely become a dominant holding in both funds, effectively making them a leveraged expression of the SpaceX story wrapped in broader space economy diversification.

  • At this stage we have no interest in the MOON ETF that will likely be buying SPCX stock post IPO.
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Global X S&P/ASX 200 High Dividend ETF (ZYAU)
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