Advisors Asset Management launched the S&P 500 High Dividend Value exchange-traded fund (SPDV, Financial) in November 2017 and has been paying steady monthly dividends since the launch. The new ETF is one of two new tracker funds launched by Advisors Asset Management on Nov. 28, 2017 that seek to passively replicate a custom dividend value index. SPDV has been the company’s top performer since the launch with a 2.85% year-to-date total return as of June 4.
SPDV recently reported a dividend of 9.168 cents payable on June 6. The ETF has been reporting an ex-dividend date around the first of each month. The most recent dividend brings the Fund’s dividend yield to 4.13%.
SPDV seeks to identify superior income opportunities in the large-cap equity value universe through a passive, tracker fund approach. The fund uses a customized large-cap value index in the S&P 500 Dividend & Free Cash Flow Yield Index to provide exposure to dividend income opportunities in the space. The replication approach allows the fund to offer a low net expense ratio of 0.29%.
The S&P 500 Dividend & Free Cash Flow Yield Index is a passive, fundamentally-screened index, newly launched by S&P in October 2017. The index uses a fundamental screening methodology to systematically identify top stocks from the S&P 500 that simultaneously have high dividend yields and high free cash flow levels over time for which to make shareholder payouts.
The fund seeks to offer a superior alternative to large-cap and large-cap dividend funds like the SPDR S&P 500 Index ETF (SPY, Financial) and the SPDR S&P 500 High Dividend ETF (SPYD, Financial), which seek to replicate the S&P 500 and the S&P 500 High Dividend Index respectively. SPDV also offers an affordable entry price at $26.76.
Year to date, SPDV has been outperforming its close competitor SPYD while just lagging slightly behind SPY. Hypothetical returns show the new fund outperforming SPYD on a one-year basis with a return of 10.89%. As the fund gains longevity, it appears likely to become a top performer in the high income, U.S. large-cap value universe.
Source: Morningstar and S&P
The AAM S&P Emerging Markets High Dividend Value ETF
In November, Advisors Asset Management also launched the AAM S&P Emerging Markets High Dividend Value ETF (EEMD, Financial). EEMD offers a high income equity fund for investors seeking slightly higher risk and return through investment in emerging market equities.
Source: Morningstar and S&P
Disclosure: I own SPDV.
