launched today what it says is the first revenue-weighted dividend ETF.
The RevenueShares Ultra Dividend Fund
will reportedly provide exposure to the 60 highest yielding dividend stocks in the S&P 900.
The fund launch is only the latest step in the firm's steady plan for ETF growth.
RevenueShares' parent company received a $7 million cash infusion from Chinese private equity firm Suzhou Industrial Park Kaida Venture Capital
in order to build up its ETF operations
As part of that buildup, RevenueShares developed its distribution team
, led by recently hired distribution head Steve Cornelius
, who updated MFWire earlier this month
about the firm's evolving sales strategy.
Here is the press release:
Company Press Release
RevenueShares Expands Family of ETFs
RevenueShares has expanded its family of ETFs with today’s launch of the RevenueShares Ultra Dividend Fund (RDIV), which provides exposure to the 60 highest yielding dividend stocks in the S&P 900. RDIV tracks an index that yields 4.92 percent, one of highest of all U.S. dividend focused ETFs.
The new fund is the next step in the firm’s goal to expand its revenue-weighted strategies since receiving an equity investment in May. RDIV joins the firm’s flagship funds (RWL, RWK and RWJ), which have five years of significant outperformance over market cap funds.
As the first revenue-weighted dividend ETF, RDIV is positioned to potentially capture the capital appreciation benefits of, revenue-producing companies while providing income-focused investors the yield they seek.
Besides the attractive dividend yield, RDIV exhibits several compelling points that make the investment case for a revenue-weighted dividend strategy.
1. Dividend growth: 8 of the top 10 holdings grew their dividend distributions on an annualized basis from 2007 to 2012, while 60 percent of all index constituents increased their dividend distributions over the same period.
2. Sector diversification: The index has a defensive posture with utilities, telecoms and consumer staples companies receiving the highest allocations. These sectors are known for lower beta and higher dividend yields than broad market indexes. The index has exposure across all sectors with defense and tech companies having strong representation too.
3. Price appreciation: By drawing from large and mid cap stocks, the index blends stability and high expected future returns. Since company revenue is an important component of future market returns, a revenue-weighted index is positioned to provide greater exposure to companies with future price appreciation potential.
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