MONUMENT, Colo., Nov. 29, 2017 /PRNewswire/ -- Advisors Asset Management (AAM), one of the leading providers of investment solutions, is entering the U.S. exchange-traded fund (ETF) market with the launch of two innovative dividend ETFs. The inaugural ETFs focus on income and value, seeking to help investors meet their current cash flow and future capital appreciation goals.
- AAM S&P 500 High Dividend Value ETF (NYSE: SPDV) targets attractively valued U.S. large cap stocks that exhibit both a high dividend yield and sustainable dividend distribution characteristics.
- AAM S&P Emerging Markets High Dividend Value ETF (NYSE: EEMD) targets attractively valued emerging market stocks that exhibit both a high dividend yield and sustainable dividend distribution characteristics.
"We are excited to enter the ETF market," said Lance McGray, Managing Director, Head of ETF Product at AAM. "For nearly two decades AAM has offered investors innovative income generating solutions and these ETFs are the most recent addition to our diverse product suite."
At the core of these common sense solutions is the S&P Dividend and Free Cash Flow Yield Index series, which are 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. Just as important as the actual dividend yield is the sustainability of that dividend. 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. This may help investors not only meet their current cash flow needs, but also potentially provide future capital growth."
In addition to providing all the potential benefits of an ETF, including low cost, tax efficiency, transparency and flexibility, SPDV and EEMD target five stocks from each GICS sector, with the goal of providing investors a full range of sustainable dividend opportunities.
"There has been massive growth within the ETF industry and we are excited to be part of the ETF landscape. We have aligned ourselves with leading service providers, including S&P Dow Jones and The New York Stock Exchange, and are committed to offering specialized solutions to our financial advisor partners," said AAM President Andrew S. Williams. "We will continue to provide offerings such as these ETFs to empower advisors to broaden their portfolios, while potentially meeting their clients' income challenge."
About Advisors Asset Management
For more than 35 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 now 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 contains 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. Diversification does not assure a profit or protect against a loss in a declining market.
SPDV expense ratio is 0.29% and EEMD expense ratio is 0.49%.
The S&P 500 Dividend and Free Cash Flow Yield and S&P Emerging Markets 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 500 Dividend and Free Cash Flow Yield and S&P Emerging Markets 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 500 Dividend and Free Cash Flow Yield and S&P Emerging Markets 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 Securities and Exchange Commission (SEC) and FINRA do not approve, endorse, nor indemnify any security. The AAM S&P 500 High Dividend Value and AAM Emerging Markets Dividend Value ETFs are distributed by Quasar Distributors, LLC. Quasar and AAM are not affiliated.
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CRN: 2017-1031-6221 R
SOURCE Advisors Asset Management