Global X has launched the Global X Iconic US Brands ETF (Bats: LOGO), an ETF that invests in US-listed companies that possess strong brand equity and have built long-term loyalty among American customers.

The new ETF from Global X seeks to tap into the US consumption story.

The fund tracks the Accuvest Iconic US Brands Index. The index tracks the performance of US-listed companies that Accuvest deems to have an iconic brand, using a proprietary model.

The methodology focuses on companies from defined sub-industries that have exposure to consumer spending or to the consumption supply chain. Firms in these sub-industries are ranked based on market capitalisation, three-year total sales, and three-year sales growth rate. The 100 stocks with the highest rating are included in the index.

To determine constituent weights, the 100 index members are then ranked based on one-year revenue growth and trailing one-year free cash flow. The 25 index members with the highest ranking are given a weighting of 2% each, and the remaining 75 are equally weighted across the remaining 50% of the portfolio.

Current constituents with a 2% weight include General Motors, Western Digital, JP Morgan Chase, Eli Lilly, Home Depot and Marriot International.

The ETF has an annual management fee of 0.48%.

The launch comes hot on the heels of the rollout of a similar ETF earlier this year, the Brand Value ETF (NYSE Arca: BVAL). BVAL tracks 50 firms that have unrealised brand value, as judged by a specialist brand consultancy. The ETF has assets of $14.9 million and a total expense ratio of 0.65%.