New York-based Global X has made changes to its $40 million Global X SuperDividend Alternatives ETF (ALTY US) including a tweak to the name, modifications to the underlying strategy, and a much pared back expense ratio.

The ETF provides exposure to high-yielding securities across a variety of alternative asset classes.

The Nasdaq-listed fund, now rebranded the Global X Alternative Income ETF, is linked to the Indxx SuperDividend Alternatives Index which provides exposure to high-yielding securities across a variety of alternative asset classes.

Distributions are made on a monthly basis.

While the underlying index officially remains the same, its methodology has been revised.

The index previously targeted four different alternative income segments: Infrastructure (covering MLPs and equities of infrastructure companies), Real Estate (global REITs), Institutional Managers (business development companies and publicly-listed private equity companies), and Fixed Income and Derivatives (emerging market debt, mortgage-backed and asset-backed securities, and option-writing through the purchase of closed-end funds).

The segments were weighted such that each contributed equally to the ETF’s total volatility.

The new methodology sees the index cover five much narrower segments: Infrastructure (also MLPs and equities of infrastructure companies), Real Estate (also global REITs), Preferred Securities, Emerging Market Bonds, and Covered Calls (a Nasdaq 100 covered call strategy). Moreover, exposure to each segment apart from Infrastructure is obtained by investing in one of Global X’s other ETFs.

The segments are weighted equally with rebalancing occurring on an annual basis.

The expense ratio has been reduced from 2.82% to 0.50% due to the fund’s reduction in exposure to third-party closed-end funds which typically come with hefty price tags.