Mr. Chris McHaney of Global X Investments reports
GLOBAL X LAUNCHES DIVY: THE GLOBAL X ACTIVE U.S. DIVIDEND ETF
Global X Investments Canada Inc. has launched the Global X Active U.S. Dividend ETF. Units of the ETF (exchange-traded fund) begin trading today on the Toronto Stock Exchange.
Global X Active U.S. Dividend ETF is an actively managed ETF focused on total shareholder return from U.S. companies, evaluating both dividends and share buybacks rather than dividend yield alone. Supported by proprietary AI (artificial intelligence) technology, the ETF targets businesses with the financial discipline to sustain and grow those returns over time. Global X Active U.S. Dividend ETF is subadvised by Mirae Asset Global Investments (USA) LLC.
"Too many dividend strategies are still chasing yield, and, in our view, that's the wrong starting point," said Ryan Coyle, senior portfolio manager at Mirae Asset USA. "The companies we want to own are the ones with the discipline to grow their returns over time -- not the ones with the highest yield today. That's the lens we apply every month when we review the portfolio, and it's what we believe sets DIVY apart."
As part of its subadvisory mandate, Mirae Asset USA leverages quantitative model services from its affiliate WealthSpot LLC, an affiliate of Mirae Asset USA and the manager.
WealthSpot's AI strategy evaluates approximately 1,000 U.S. companies each trading day using two independent AI engines: a market behaviour engine and a fundamental insights engine, processing over 100,000 data points per day. This machine-learning-driven analysis, which incorporates deep learning techniques, is combined with active portfolio manager oversight.
WealthSpot's technology is currently also used by Mirae Asset USA in relation to other subadvisory mandates, including in the United States.
More details on Global X Active U.S. Dividend ETF are outlined in the table below.
The base currency of the ETF is U.S. dollars. Units of the ETF are available in both Canadian dollars and U.S. dollars. No currency hedging is employed in respect of U.S.-dollar units or Canadian-dollar units of the ETF.
"Canadian investors have long sought quality U.S. dividend exposure, but most available solutions are built on the same narrow yield-screening logic that has existed for decades," said Chris McHaney, executive vice-president, head of investment management and strategy. "DIVY gives Canadians access to a genuinely differentiated approach -- one that looks at the full picture of shareholder return and applies the power of two AI engines to analyze data at a scale and speed that traditional index strategies simply cannot match."
The ETF closed its initial offering of units to its designated broker and will begin trading today on the TSX.
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