PowerShares, the issuer behind the ultra-popular S&P Low Volatility ETF (SPLV), announced this week the launch of another factor-based fund that will offer exposure to large cap dividend paying stocks. The new S&P 500 High Dividend Portfolio (SPHD) will seek to replicate an index consisting of 50 stocks that have historically exhibited high dividend yields and low volatility. Specifically, the underlying index will determine its holdings as follows [for updates on all new ETFs, sign up for the free ETFdb newsletter]: Pick the 75 stocks from the S&P 500 Index that have the highest dividend yield over the last 12 months (with no one sector able to contribute more than 10 names) Select the 50 stocks from that group that have the lowest realized volatility over the past 12 months Weights each of the 50 components based on dividend yield The result is a subset of the S&P 500 that has [...] Click here to read the original article on ETFdb.com. Related Posts: PowerShares Launches International High Beta ETFs 101 ETF Lessons Every Financial Advisor Should Learn The 18 Most Successful New ETFs Of 2011 PowerShares Files For More High Beta, Low Volatility ETFs May ETF Roundup: Launches, Filings, and Closures
PowerShares, the issuer behind the ultra-popular S&P Low Volatility ETF (SPLV), announced this week the launch of another factor-based fund that will offer exposure to large cap dividend paying stocks. The new S&P 500 High Dividend Portfolio (SPHD) will seek to replicate an index consisting of 50 stocks that have historically exhibited high dividend yields and low volatility. Specifically, the underlying index will determine its holdings as follows [for updates on all new ETFs, sign up for the free ETFdb newsletter]: Pick the 75 stocks from the S&P 500 Index that have the highest dividend yield over the last 12 months (with no one sector able to contribute more than 10 names) Select the 50 stocks from that group that have the lowest realized volatility over the past 12 months Weights each of the 50 components based on dividend yield The result is a subset of the S&P 500 that has [...]
Click here to read the original article on ETFdb.com.
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