Tag Archives: russell

ProShares Doubles Dividend Growth ETF Lineup

Summary ProShares recently launched two new dividend growth ETFs. A look at the methodology behind the underlying dividend indices. The ETFs include companies with a history of raising dividends. By Todd Shriber & Tom Lydon Looking to build on the success of the ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL ) , ProShares doubled the size of its dividend growth ETF suite today with the introduction of two new funds. Joining NOBL and the ProShares MSCI EAFE Dividend Growers ETF (NYSEArca: EFAD ) as ProShares dividend growth ETFs are the ProShares Russell 2000 Dividend Growers ETF (NYSEArca: SMDV ) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (NYSEArca: REGL ) . Like, NOBL, the ProShares S&P MidCap 400 Dividend Aristocrats ETF tracks a dividend aristocrats index. The midcap dividend aristocrats index requires 15 consecutive years of increased dividends for inclusion whereas NOBL’s underlying index requires a minimum dividend increase streak of 25 years. REGL’s index is equal-weighted. The new ETF allocates a combined 47.6% of its weight to the utilities and financial services sectors with industrials and consumer staples combining for another 28.7%, according to ProShares data . The ProShares Russell 2000 Dividend Growers ETF, a dividend spin on the Russell 2000, the benchmark U.S. small-cap index, tracks the Russell 2000 Dividend Growth Index. That index includes small-cap firms with dividend increase streaks of at least a decade. Index constituents are screened for liquidity and dividend status, then selected and equal weighted subject to a maximum sector weight of 30%, according to Russell Investments. SMDV allocates almost 30.2% of its weight to financial services stocks, an overweight of more than 600 basis points to that sector relative to the Russell 2000. The new ETF also features a combined 34.3% weight to materials and utilities stocks. Those sectors combine for just over 8% of the Russell 2000. “Over the past 28 years, U.S. equities that grew dividends year over year returned 13.9%, while those that paid them without growing them returned 10.1%, according to Ned Davis Research. The findings are based on an analysis of companies underlying the Russell 3000 Index, a measure of the broad U.S. equities market, from February 2, 1987 through December 31, 2014,” said ProShares in a statement. Investors have gravitated to dividend growth ETFs , including NOBL. NOBL is just 16 months old and is already home to over $600 million in assets. The ETF was named ETF Product of the Year at the William F. Sharpe Indexing Achievement Awards. REGL and SMDV, the new ProShares dividend ETFs, each charge 0.4% per year. ProShares Russell 2000 Dividend Growers ETF Sector Weights Table Courtesy: ProShares Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More…) The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.

February 2015: Funds In Registration

By David Alphacentric Bond Rotation Fund Alphacentric Bond Rotation Fund will pursue “long-term capital appreciation and total return through various economic or interest rate environments.” They’ll rotate through two to four global bond ETFs based on their judgment of the relative strengths of various bond sectors. The fund will be managed by Gordon Nelson, Chief Investment Strategist, and Tyler Vanderbeek, both of Keystone Wealth Advisors. The expense ratio will be 1.39% and the minimum initial investment for the no-load “I” class shares is $2,500, reduced to $100 for accounts set up with an automatic investing plan. Alphacentric Enhanced Yield Fund Alphacentric Enhanced Yield Fund will seek current income by investing in asset-backed fixed income securities. While it expects to invest over 25% in residential mortgage-backed securities, it can also pursue “securities backed by credit card receivables, automobiles, aircraft, [and] student loans.” It might also invest in Treasuries or hedge the portfolio by shorting. The fund will be managed by a team from Garrison Point Capital, led by Tom Miner. Expenses are 1.74%. The minimum investment for the no-load “I” class shares is $2,500, reduced to $100 for accounts set up with an automatic investing plan. AMG Trilogy Emerging Wealth Equity Fund AMG Trilogy Emerging Wealth Equity Fund will seek long-term capital appreciation by investing in firms whose earnings are driven by their exposure to emerging markets. That might include firms domiciled in developed countries, as well as emerging ones. They can invest in both equities and derivatives and they anticipate building an all-cap portfolio of 60-100 securities. The fund will be managed by a team from Trilogy Global Advisors. The initial expense ratio is 1.45% after waivers and the minimum investment will be $2,000. Columbia Multi-Asset Income Fund Columbia Multi-Asset Income Fund will primarily seek high current income and secondarily, total return. They can invest in pretty much anything that generates income, there’s no set asset allocation and the portfolio doesn’t exactly explain what they’re looking for in an investment. If you have reason to trust Jeffrey Knight, the lead manager, and Toby Nangle, go for it! The expenses are not yet set. The minimum investment for “A” shares will be $2,000. Though the “A” shares carry a load, most Columbia funds are no-load/NTF at Schwab and, likely, other supermarkets. DoubleLine Strategic Commodity Fund DoubleLine Strategic Commodity Fund will seek long-term total return by having (leveraged) long exposure to commodity indexes with selective long or short exposure to individual commodities, indexes or ETFs. Then, too, it might turn market neutral. The disclosure of potential risks runs to 13 pages, single-spaced. It will be managed by Jeffrey J. Sherman of DoubleLine Commodity Advisors. Expenses are not yet set. The minimum investment is $2,000. Frontier MFG Global Plus Fund Frontier MFG Global Plus Fund will pursue capital appreciation by investing in 20-40 high-quality companies purchased at attractive prices, both in the US and elsewhere. There will be a macro-level risk overlay. The fund will be managed by Hamish Douglass, of the Australian firm Magellan Asset Management. Mr. Douglass has managed a perfectly respectable global fund for Frontier since 2011. The expense ratio for “Y” shares will be 1.20% and the minimum investment will be $1,000. Sit Small Cap Dividend Growth Fund Sit Small Cap Dividend Growth Fund mostly seeks income that’s greater than its benchmarks (the Russell 2000) and that is growing; it’s willing to accept some capital appreciation if that comes along, too. The Russell 2000 currently yields 1.29%. The plan, not surprisingly given the name, is to invest in “dividend paying growth-oriented companies [the manager] believes exhibit the potential for growth and growing dividend payments.” The portfolio will be mostly domestic. The lead manager will be Roger Sit. Expenses for the “S” class will be 1.50% and the minimum initial investment will be $5,000. Vanguard Tax-Exempt Bond Index Fund Vanguard Tax-Exempt Bond Index Fund will track the Standard & Poor’s National AMT-Free Municipal Bond Index. Adam Ferguson will manage the fund. The expense ratio will be 0.20% and the minimum investment will be $3,000. The Admiral share class will drop expenses to 0.12% with a $10,000 minimum. Virtus Long/Short Equity Fund Virtus Long/Short Equity Fund will seek total return by investing, long and short, in various sorts of equities including MLPs and REITs. The fund will be managed by John F. Brennan, Managing Director at, and cofounder of, Sirios Capital Management. The minimum initial investment will be $2,500. The expense ratio has not yet been announced. Though the “A” shares carry a load, most Virtus funds are no-load/NTF at Schwab and, likely, other supermarkets.