NORWOOD, Mass., June 21, 2016 /PRNewswire/ -- W.E. Donoghue & Co., Inc., a Registered Investment Advisor specializing in tactical strategies, today announced that the W.E. Donoghue Power Dividend Total Return Index (PWRDXTR) had notched an impressive 7.96% gain year-to-date, outperforming the S&P 500 by 4.94%. The index is accessible both through W.E. Donoghue's suite of mutual funds as well as through an SMA. The index's transparent, tactical asset allocation methodology is somewhat unique in the indexing world, taking a decidedly strategic approach. Relying on proprietary trading signals, the index moves into U.S. Treasuries during bear markets, and allocates according to S-Network's Sector Dividend Dogs Index (SDOGX) when the signal indicates a bull market.
"Investors want to be invested in the markets, but they've been spooked by sudden pullbacks," said Curt Meyer, Managing Director at W.E. Donoghue & Co., Inc. "Our index offers the best of both worlds. By taking a tactical approach, we attempt to preserve gains when the going gets tough and move back into the market when our trading signals alert us to a bull market. In other words, it's not what you make; it's what you keep. We believe that shifting defensively during periods of market decline can potentially preserve capital and enhance returns."
"It's a tactical dividend strategy for today's low yield world," said Richard Philips, Co-Founder of S-Network Global Indexes. The firm's S-Network Sector Dividend Dogs Index (SDOGX) features an equal weighting to avoid the pitfalls of overconcentration, while offering access to dividend-paying stocks in the S&P 500. "Dividend stocks tend to be less volatile, while paying income and offering a potential inflation hedge," Philips continued. "Dividends accounted for 100% of the S&P 500's returns from the beginning of 2000 through the end of September 2012. We're proud to have contributed to PWRDXTR's outstanding performance year-to-date."
PWRDXTR is not the only index to make use of W.E. Donoghue and S-Network's unique methodology. W.E. Donoghue also offers the following through SMAs or Mutual Funds: PWRDX (The W.E. Donoghue Power Dividend Index), PWRIDX (The W.E. Donoghue Power Dividend International Index), PWRMDX (The W.E. Donoghue Power Dividend Mid-Cap Index), PWRIIDX (The W.E. Donoghue Power Dividend Developed International Index) and the PWRMOX (The W.E. Donoghue Power Momentum Index) which makes use of a slightly modified methodology (rotating through sectors, rather than rotating out of the market entirely all at once).
Arro Financial Communications
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SOURCE W.E. Donoghue; S-Network Global Indexes, Inc.