The SGI Enhanced Core ETF (USDX) is an equity ETF managed by Summit Global Investments with $0.36B in assets under management. Launched in February 2024, USDX aims to generate current income and enhanced yield through a diversified portfolio of high-quality, short-term money market instruments and ultra-short-term options strategies. A key differentiator is its focus on reduced volatility and higher dividend yields compared to underlying indices, though its current dividend yield is 0.00%. The ETF carries a relatively high expense ratio of 1.05%.
The SGI Enhanced Core ETF (USDX) is an equity ETF managed by Summit Global Investments with $0.36B in assets under management. Launched in February 2024, USDX aims to generate current income and enhanced yield through a diversified portfolio of high-quality, short-term money market instruments and ultra-short-term options strategies. A key differentiator is its focus on reduced volatility and higher dividend yields compared to underlying indices, though its current dividend yield is 0.00%. The ETF carries a relatively high expense ratio of 1.05%.
ETF Overview
The SGI Enhanced Core ETF (USDX) seeks to generate current income and enhanced yield by utilizing a diversified portfolio of higher-yielding, high quality short-term money market instruments and ultra- short-term options strategies. Emphasizing reduced volatility through disciplined value investment, our goal is to outperform and receive higher dividend yields when compared to the underlying indices.
The SGI Enhanced Core ETF (USDX) seeks to outperform underlying indices and provide higher dividend yields by investing in a diversified portfolio of higher-yielding, high-quality short-term money market instruments and ultra-short-term options strategies. The fund prioritizes reduced volatility through disciplined value investment. USDX's strategy involves holding a mix of money market funds, with significant allocations to Vanguard Treasury Money Market Investor (VUSXX) at 43.86% and Vanguard Federal Money Market Investor (VMFXX) at 43.56%. Other notable holdings include North Capital Treasury Mkt Instl (NCGXX) at 7.63%, PIMCO Government Money Market M (PGFXX) at 2.59%, and Fidelity Government Cash Reserves (FDRXX) at 2.56%. The ETF's sector allocation is heavily weighted towards Financial Services at 80.1%, with the remaining 19.9% in Cash & Others. Country exposure is primarily in the United States (44.7%), with a substantial portion (55.3%) allocated to other regions.
Risk Metrics
USDX presents several risk considerations for investors. The fund's concentration in Financial Services (80.1%) exposes it to sector-specific risks, meaning that any downturn in the financial industry could significantly impact its performance. Furthermore, the ETF's top holdings are heavily concentrated in a few money market funds; Vanguard Treasury Money Market Investor (VUSXX) and Vanguard Federal Money Market Investor (VMFXX) account for approximately 87% of the portfolio. This concentration increases the fund's sensitivity to the performance of these specific funds. With a beta of 0.00, USDX exhibits very low volatility relative to the broader market. However, the high expense ratio of 1.05% can create a significant drag on returns, especially in a low-yield environment. Past performance does not guarantee future results.
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Risk Metrics
Beta: 0.00
Questions & Answers
What is USDX and what does it track?
USDX, or the SGI Enhanced Core ETF, is an equity ETF managed by Summit Global Investments. Launched in February 2024, USDX aims to generate current income and enhanced yield by investing in a diversified portfolio of higher-yielding, high-quality short-term money market instruments and ultra-short-term options strategies. The ETF's investment strategy focuses on reducing volatility through disciplined value investment, with the goal of outperforming and receiving higher dividend yields compared to underlying indices. However, it's important to note that the current dividend yield is 0.00%.
What is the expense ratio for USDX?
The SGI Enhanced Core ETF (USDX) has an expense ratio of 1.05%. This means that for every $10,000 invested, $105 is used to cover the fund's operating expenses annually. While this provides access to the fund's investment strategy, the 1.05% expense ratio is relatively high compared to other equity ETFs, where the category average is approximately 0.44%. this may be worth researching higher expense ratio when evaluating the potential returns of USDX.
What are the top holdings in USDX?
The SGI Enhanced Core ETF (USDX) has a concentrated portfolio of money market funds. As of 2026-03-15, the top three holdings are Vanguard Treasury Money Market Investor (VUSXX) at 43.86%, Vanguard Federal Money Market Investor (VMFXX) at 43.56%, and North Capital Treasury Mkt Instl (NCGXX) at 7.63%. These three holdings alone account for over 94% of the ETF's total assets. The remaining holdings include PIMCO Government Money Market M (PGFXX) at 2.59% and Fidelity Government Cash Reserves (FDRXX) at 2.56%.
Is USDX a good long-term investment?
Evaluating USDX as a long-term investment requires careful consideration of its strategy and associated costs. The ETF's focus on short-term money market instruments and ultra-short-term options strategies aims to provide current income and enhanced yield. However, the high expense ratio of 1.05% can significantly impact long-term returns, especially in a low-yield environment. With a beta of 0.00, USDX exhibits very low volatility compared to the broader market. Investors should weigh these factors against their individual investment goals and risk tolerance. Past performance does not guarantee future results.
How does USDX compare to similar ETFs?
USDX differentiates itself with its strategy of combining short-term money market instruments and ultra-short-term options strategies. However, its expense ratio of 1.05% is significantly higher than many competing ETFs in the equity and money market space. While USDX seeks to enhance yield, its current dividend yield is 0.00%. The fund's AUM of $0.36B is relatively small compared to more established ETFs, which may impact liquidity and trading costs. Investors should compare USDX's strategy, expense ratio, and AUM to those of other ETFs with similar investment objectives to determine the best fit for their portfolio.
Does USDX pay dividends?
According to the latest data, the SGI Enhanced Core ETF (USDX) has a dividend yield of 0.00%. While the fund's investment strategy aims to generate current income and enhanced yield, it is not currently distributing dividends. Investors seeking dividend income may want to consider other ETFs with a proven track record of dividend payments. It's important to check the fund's official website or fact sheet for the most up-to-date dividend information.