Access domestic, emerging and now international developed market high-dividend yielding mid and large-cap stocks with an emphasis on the dividend sustainability
MONUMENT, Colo., Nov. 29, 2018 /PRNewswire/ -- Advisors Asset Management (AAM), one of the leading providers of investment solutions, is launching their third exchange-traded fund (ETF), the S&P Developed Markets High Dividend Value ETF (NYSE:DMDV).
"We are excited to launch our third ETF within our high dividend value lineup," said Lance McGray, Managing Director, Head of ETF Product at AAM. "With the addition of DMDV we now offer investors our innovative high dividend value strategy across domestic, emerging and international developed markets."
DMDV is the most recent addition to AAM's high dividend value ETF suite which includes the S&P 500 High Dividend Value ETF (SPDV) as well as the S&P Emerging Markets High Dividend Value ETF (EEMD), which focus on income with a value tilt, and seek to help investors meet their current cash flow and future capital appreciation goals.
- AAM S&P Developed Markets High Dividend Value ETF (NYSE:DMDV) targets attractively valued developed international mid and large cap stocks that exhibit both a high dividend yield and sustainable dividend distribution characteristics.
At the core of this common-sense solution is the S&P Dividend and Free Cash Flow Yield Index series, which is designed to balance current cash flow with future capital growth. To accomplish this, 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.
McGray added, "Reaching for the highest yielding stocks is not always the best course of action. Dividend sustainability may be just as important as the actual dividend yield itself. 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."
In addition to providing all the potential benefits of an ETF, including low cost, tax efficiency, transparency and flexibility, DMDV is scheduled to pay monthly distributions by targeting five stocks from each GICS sector, with the goal of providing investors a full range of sustainable dividend opportunities.
About Advisors Asset Management
For nearly 40 years, AAM has been a trusted resource for financial advisors and broker/dealers. It offers access to UITs (unit investment trusts), open- and closed-end mutual funds, separately managed accounts (SMAs), structured products and the fixed income markets, portfolio analytics and exchange-traded funds (ETFs). For more information, visit www.aamlive.com.
The Funds' investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company, and may be obtained by calling 800.617.0004 or visiting www.aamlive.com. Read it carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may be only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns. Companies with high yield or payout ratio may underperform other securities in certain market conditions and reduce or discontinue paying dividends entirely while included in the index. The Fund's return may not match or achieve a high degree of correlation with the return of the underlying Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index. Investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuation or to political or economic instability. Investments in mid-cap companies may involve less liquidity and greater volatility than larger companies. Diversification does not assure a profit or protect against a loss in a declining market.
DMDV expense ratio is 0.39%.
The S&P Dividend and Free Cash Flow Yield Indexes are products of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by Advisors Asset Management, Inc. (AAM). Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by AAM. The S&P Dividend and Free Cash Flow Yield Indexes are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P Dividend and Free Cash Flow Yield Indexes. It is not possible to invest directly in an index.
Free cash flow yield is calculated by taking the free cash flow per share divided by the share price. A high free cash flow implies a healthy operating condition and strong balance sheet.
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity within the meaning of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor's objectives and circumstances and in consultation with his or her advisers.
Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC. The AAM ETFs are distributed by Quasar Distributors, LLC. Quasar and AAM are not affiliated.
18925 Base Camp Road | Monument, CO 80132 | www.aamlive.com
CRN: 2018-1128-7056 R
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