Advisors Asset Management (AAM) is entering the U.S. exchange-traded fund (ETF) market with the launch of two dividend ETFs.
The inaugural ETFs — AAM S&P 500 High Dividend Value ETF (NYSE: SPDV) and AAM S&P Emerging Markets High Dividend Value ETF (NYSE: EEMD) — focus on income and value, seeking to help investors meet their current cash flow and future capital appreciation goals.
“We are excited to enter the ETF market,” said Lance McGray, managing director, head of ETF product at AAM. “For nearly two decades AAM has offered investors innovative income generating solutions, and these ETFs are the most recent addition to our diverse product suite.”
SPDV targets attractively valued U.S. large-cap stocks that exhibit both a high dividend yield and sustainable dividend distribution characteristics. EEMD targets attractively valued emerging market stocks that exhibit both a high dividend yield and sustainable dividend distribution characteristics.
At the core of these solutions is the S&P Dividend and Free Cash Flow Yield Index series, which are designed to balance current cash flow with future capital growth. The underlying index series focuses on two key valuation indicators to identify sustainable dividend-paying stocks offering fundamental value: dividend yield and free cash flow yield.
According to McGray, reaching for the highest yielding stocks is not always the best course of action.
“Just as important as the actual dividend yield is the sustainability of that dividend,” he said in a statement. “In our opinion, free cash flow yield is an ideal indicator of dividend sustainability, and when coupled with dividend yield in the selection process, the result can be powerful. This may help investors not only meet their current cash flow needs, but also potentially provide future capital growth.”
BNY Mellon Investment Management Launches Multi-Asset Fund
BNY Mellon Investment Management launched the BNY Mellon Insight Broad Opportunities Fund, a new multi-asset fund that invests across a wide range of asset classes using multiple investment strategies.
Insight’s Matthew Merritt, Steve Waddington and Michael Ford are the fund’s primary portfolio managers.
The fund’s assets will be allocated among a broad range of asset classes, including equities, fixed income, currencies, real estate, listed infrastructure and commodities, in both developed and emerging markets.
In seeking to provide a minimum average annual total return of USD 1-Month LIBOR plus 4.5% over rolling five-year periods, the portfolio managers select investment strategies and asset classes based on their view of macroeconomic themes at the time of investment.
The fund offers Class A (DIOAX), Class C (DIOCX), and Class I (DIOIX) shares with a minimum initial investment of $1,000. The fund also offers Class Y (DIOYX) shares generally with a minimum initial investment of $1 million.
FTSE Russell Launches 2 New ESG Index Series
FTSE Russell expanded its Sustainable Investment index offering with the launch of the FTSE Global Climate Index Series and the FTSE ESG Index Series.
The FTSE Global Climate Index Series uses index methodology to weight index constituents by three climate change measures while maintaining a risk and return profile similar to broad market benchmarks. The transparent, rules-based construction reflects the performance of eligible securities from the FTSE All-World, FTSE All-Share and the Russell 1000 Indexes, with constituent green revenues measured by FTSE Russell’s Green Revenues data model.
The FTSE ESG Index Series is designed to help investors align investment and ESG objectives into a broad benchmark while maintaining industry neutrality. Company weights within each index are tilted using FTSE Russell’s ESG Ratings and data model and reflect the performance of eligible securities from the FTSE Developed, FTSE Emerging, FTSE All-Share and Russell 1000 Indexes.
Pax World Announces Annual Reconstitution of the Pax Global Women’s Leadership Index
There were 63 securities added to the index and 48 deleted as a result of the annual reconstitution. A comprehensive list of the changes to the index, including additions and deletions, has been posted to the Pax World website.
The Pax Global Women’s Leadership Index is the first index consisting of the highest-rated companies in the world for advancing women’s leadership. Pax World Gender Analytics rates companies on five factors: representation by women on the board of directors, representation of women in executive management, presence of female CFOs and CEOs, and whether they are signatories to the Women’s Empowerment Principles, a joint initiative of the UN Global Compact and UN Women.
Companies in the index also meet threshold environmental, social and governance (ESG) standards, as rated by MSCI ESG Research.
Among companies in the index, the percent of senior management positions held by women has increased 6% and the percent of board seats held by women has increased 4% since the index was created in 2014.
Jefferson National Adds New Investment Options to Help Advisors Build Robust Portfolios
Jefferson National, operating as Nationwide’s advisory solutions business, added two new funds to Monument Advisor, a flat-fee investment-only variable annuity (IOVA).