Toronto-based Purpose Investments has launched the actively managed Purpose Enhanced Dividend Fund (PDIV CN), combining a portfolio of high-quality North American dividend-paying equities with a tactical covered-call option overlay.
Wisdomtree has announced that the WisdomTree US LargeCap Value Fund (EZY US) has been restructured into the WisdomTree US Quality Shareholder Yield Fund (QSY US). QSY is an actively managed factor-based ETF which focuses on US-listed companies offering attractive shareholder yield (dividends or buybacks) with a focus on sustainability of income payments.
US-based ETF provider GraniteShares has acquired the Master Income ETF (HIPS US) and rebranded it as the HIPS US High Income ETF. The fund invests in pass-through securities offering high levels of income.
Deutsche Asset Management has closed two Xtrackers ETFs – the Xtrackers MSCI Emerging Markets High Dividend Yield Hedged Equity ETF (HDEE US) and the Xtrackers MSCI Eurozone High Dividend Yield Hedged Equity ETF (HDEZ US). The funds were de-listed from Cboe ETF Marketplace on 18 December 2017.
By Nizam Hamid, ETF Strategist at WisdomTree in Europe.
After US equities, Japanese equities are the second largest country weighting in the MSCI World Index, at close to 9% as of the end of October 2017. As such, Japan is an important allocation for many investors. However, the country has unique economic and equity market attributes, and therefore it’s paramount that investors find an appropriate investment solution.
Advisors Asset Management has entered the US ETF market with the launch of two dividend-focused ETF strategies targeting US-listed and emerging market equities. The NYSE Arca-listed funds aim to enhance the sustainability of their dividend yields by employing a quality screen to constituent selection.
Australian ETF provider BetaShares has launched the BetaShares Active Australian Hybrids Fund (HBRD AU), the country’s first active ETF to invest in hybrids, on Australian Securities Exchange. Alex Vynokur, managing director of BetaShares, commented: “As an asset class, hybrids offer investors attractive tax-efficient income, and generally higher levels of capital stability and lower levels of volatility compared to Australian shares.”
The world’s largest 1,200 companies distributed a third-quarter record of $328.1 billion (£248bn) in dividends, according to research from Janus Henderson, putting a new full-year record for 2017 comfortably within reach. The dividend windfall is likely to enhance the appeal of equity income ETFs to yield-seeking investors.
Boston-based ETF issuer O’Shares Investments has announced the closing of two ETFs which provide currency-hedged exposure to high quality dividend-paying equities listed in Europe and Asia Pacific. Connor O’Brien, CEO of O’Shares, commented: “The decision has been made to close the funds so we can direct resources to developing new O’Shares ETFs to meet investors’ demand for different strategies.”
BlackRock has launched the iShares US Dividend and Buyback ETF (DIVB US) on Cboe ETF Marketplace, providing access to US equities with a history of dividend payments, share buybacks or both. Martin Small, head of US iShares at BlackRock, commented: “We believe all investors should evaluate DIVB as a complement, or wholesale replacement, for the traditional high dividend or dividend growth allocation.”