Published Thu, 23 May 2019 21:42:50 -0400 on Seeking Alpha
I am reviewing two fund alternatives for a quality dividend allocation in Clarendon Capital Management's, (CCM) ETF strategy - which maintains a value bias and orientation. While this strategy and offering use what are considered passive investments - they are used in the context of a portfolio that is actively managed and will shift allocations freely, as long as there are value and conservative biases. This article covers the FlexShares Quality Dividend Index Fund (QDF) (with some information on FlexShares’ two related dividend income ETFs) and the iShares Select Dividend ETF (DVY).
Looking at the FlexShares’ quality dividend indexes, there are three alternatives - Quality Dividend Index Fund (QDF), Quality Dividend Defensive Index Fund (QDEF) and Quality Dividend Dynamic Index Fund (QDYN).
Objective: Northern Trust, the designer of the quality dividend indexes, describes the funds as “designed to provide exposure to a high-quality income-oriented universe of long-only U.S. equity securities, with an emphasis on long-term capital growth and a targeted overall beta.”
ETF Website: FlexShares Exchange Traded Funds (ETFs) | Our Funds
Sponsor and AUM: FlexShares is owned by Northern Trust, which has approximately $15B under management and is 12th in the EFTDB.com league tables. These three funds were launched in 2012, so there is no concern over recency. An established fund sponsor and a significant AUM are important - CCM’s rule of thumb would be a top 25 ETF... Read more
Older articles featuring Qdef,qdyn (QDEF,QDYN):Why Dividends Matter: A Review Of Recent Research
Why Dividends Matter, Part 3
Why Dividends Matter, Part 2
Why Dividends Matter