Deka rolls-out eurozone ex-financials high dividend ETF

Oct 8th, 2015 | By | Category: Equities

Deka Investments, a German provider of exchange-traded funds, has launched the Deka EURO iSTOXX ex Fin Dividend+ UCITS ETF which provides exposure to a portfolio of high-yielding eurozone equities from all sectors apart from financials.

Deka rolls-out eurozone ex financials high dividend etf

Deka’s new ETF targets the 50 highest dividend yielding eurozone companies outside of the financials sector.

The fund is based on Stoxx’s EURO iSTOXX ex Financials High Dividend 50 Index which tracks the 50 highest dividend stocks in the eurozone, excluding financials, with a smart beta weighting methodology based on dividend yield.

“The EURO STOXX Index is one of Europe’s most well-respected benchmarks for companies in the eurozone,” said Gordon Rose, Head of ETF Management and Development at Deka Investment. “Adding ex-financials and high dividend yield filters to this makes a very appealing index for market participants.”

Hartmut Graf, chief executive officer at Stoxx, added: “The newly launched EURO iSTOXX ex Financials High Dividend 50 Index combines access to the performance of leading eurozone companies without exposure to the financial industry with a screen for high dividend yielding companies. The selection process for index components is easily understandable for market participants, and as all STOXX indices, our new index is completely rules-based and transparent.”

The index universe for the EURO iSTOXX ex Financials High Dividend 50 Index is the broad EURO STOXX ex Financials Index. All components of the underlying index are ranked in descending order of their 12 month historical dividend yield with the top 50 selected for inclusion. Index components are then weighted by their gross dividend yield and capped at a maximum weight of 10 percent.

The Deka EURO iSTOXX ex Fin Dividend+ UCITS ETF has been listed on the Deutsche Börse and Börse Stuttgart and carries a 0.30% expense ratio.

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