Description

This passively managed fund-of-funds is designed to offer exposure to U.S. large and mid-capitalization companies known for their consistent and growing dividend payouts, particularly those whose dividend performance tends to align positively with 10-year Treasury yields. It employs a proprietary, rules-based "smart beta" indexing methodology, aiming to provide investors with access to specific strategic investment factors. The selection process begins with the 1,000 largest U.S. equities. These stocks are then meticulously screened based on a composite factor score, which takes into account their dividend yield, payout ratio, historical dividend growth, and their correlation to 10-year Treasury yields. To ensure a balanced representation and remove any inherent bias toward company size, this composite score is subsequently blended with a size factor. The ultimate portfolio securities are then chosen based on this size-adjusted composite score. The fund typically comprises between 60 and 100 stocks, with groups demonstrating higher dividend yields receiving a greater weighting. A distinguishing feature of this fund, compared to others in its family, is its commitment to sector neutrality. The underlying index undergoes rebalancing on an annual basis.