TrueMark launches low volatility equity income ETF
TrueMark Investments and Titleist Asset Management have launched the TrueShares Low Volatility Equity Income ETF (DIVZ), which seeks to provide an actively managed, concentrated portfolio comprised of 25 to 35 favourably valued companies with attractive dividends that the portfolio managers expect to grow over time.
The portfolio is designed to deliver lower volatility and higher dividends than the overall market while still providing capital appreciation opportunities for investors.
“We’ve been anticipating the listing of DIVZ for quite some time,” says Michael Loukas, CEO at TrueMark Investments. “The investment philosophy clearly reflects what we believe income-focused equity investing should look like in 2021. With an emphasis on valuations and an understanding that dividend-paying companies tend to be established businesses with high cash flows and steady revenue streams, DIVZ is well positioned to provide exposure to high quality companies, while allowing investors access to stable, growing income streams as well as the opportunity for capital appreciation.”
Sub-advised by Titleist Asset Management, DIVZ’s portfolio management is led by Austin Graff, who has a proven track record of managing dividend-focused strategies.
“We thoroughly analyse the financial health of companies in our investment universe to identify potential investments with above average dividend yields, sustainable dividend growth, and long-term capital appreciation potential,” says Graff. “Dividends have historically been important contributors to total return, so we put DIVZ together with an emphasis on dividends. The portfolio goals include attractive growing dividends, long-term capital appreciation, and less volatility than the overall market, a combination that we believe will prove attractive to investors that are focused on risk adjusted returns.”
DIVZ begins with a universe of US equities with above-average dividends versus the S&P 500. The fund focuses on companies with market caps greater than $8 billion but can potentially include mid- and small-caps as well. DIVZ leverages fundamental research, competitive analysis, as well as meeting with company management to identify companies with above average dividend yield, sustainable dividend growth and attractive valuations.
DIVZ’s expense ratio is 0.65 per cent.