Top Portfolio Products: New ETFs With Dividend, Income Themes

Highland Capital Management launches nontraded product line; more

Dividend growth, strategic income ETFs announced. Dividend growth, strategic income ETFs announced.

New products and changes introduced over the last week include ProShares’ MSCI EAFE Dividend Growers ETF, a strategic income ETF from First Trust and a nontraded product line from Highland Capital Management.

Also, Nikko Asset Management has formed a specialist portfolio management team in Singapore.

Here are the latest developments of interest to advisors:

1) ProShares Launches MSCI EAFE Dividend Growers ETF

ProShares has announced the launch of the MSCI EAFE Dividend Growers ETF (EFAD), which invests in the companies in the MSCI EAFE Index (Europe, Australasia and the Far East) with the best track record of consistent year-over-year dividend growth and tracks the MSCI EAFE Dividend Masters Index.

The MSCI EAFE Dividend Masters Index holds MSCI EAFE companies that have grown their dividends for at least 10 consecutive years. The index is equally weighted and contains a minimum of 40 stocks. No single sector may represent more than 30% of the index and no single country may represent more than 50%. The index is rebalanced each February, May, August and November, with annual reconstitution during the November rebalance.

2) NASDAQ OMX Announces Launch of First Trust Strategic Income ETF

NASDAQ OMX has announced the listing of the First Trust Strategic Income ETF (FDIV), which seeks a high level of risk-adjusted income and diversification through the use of multiple asset classes, targeted investment strategies and specialized management teams.

FDIV focuses on providing risk-adjusted income and capital appreciation potential by utilizing the expertise of multiple specialist asset managers in a single investment portfolio. By tactically blending multiple investment strategies, which includes both fixed-income investments and income-producing equity securities, the fund may provide a lower-risk total-return alternative to focusing solely on one strategy.

3) Highland Capital Management Launches Nontraded Product Line

Highland Capital Management L.P. has announced  the launch of its nontraded product line with NexPoint Capital, Inc., a publicly registered business development company (BDC) NexPoint Capital, Inc. The BDC, a healthcare-focused fund, has a target raise of $1.5 billion in capital for investing primarily in medium-sized businesses.

The BDC will be distributed by Highland Capital Funds Distributor, and will be led by Brad Ross, president of Highland Funds, and Brian Mitts, chief operating officer of NexPoint Advisors and head of business development for Highland’s alternative products.

4) Nikko Asset Management Forms Specialist Portfolio Management Team

Tokyo-based Nikko Asset Management has announced the formation of a specialist portfolio management team in Singapore, to be led by Al Clark. The team will be launching multiasset products as well as integrated solutions for clients around the world.

Previously, Nikko had multiasset staff in separate locations. The Singapore move strategically consolidates its resources to maximize global multiasset capabilities.

Read the August 17 Portfolio Products Roundup at ThinkAdvisor.

 

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