Additionally, by combing for stable dividend sticks and companies that repurchase stocks, Brightman believes that these stocks could boost returns without venturing into volatile and risky firms. [Morningstar’s Model ETF Portfolio for Younger Investors]
While Research Affiliates is still developing a quasi-passive product based on Brightman’s ideas, ETF investors can approximate the strategy through dividend and buyback ETFs. [Dividend ETFs: Morningstar’s Top International Pick]
Some of the largest dividend ETFs include:
- Vanguard Dividend Appreciation ETF (NYSEArca: VIG): 2.24% 12-month yield
- iShares Dow Jones Select Dividend Index Fund (NYSEArca: DVY): 3.53% 12-month yield
- SPDR S&P Dividend ETF (NYSEArca: SDY): 3.08% 12-month yield
For buyback stocks, investors can take a look at the PowerShares Buyback Achievers Portfolio (NYSEArca: PKW). Additionally, the TrimTabs Float Shrink ETF (NYSEArca: TTFS) is an actively managed fund that focuses on companies that lower the number of shares outstanding. [Buyback ETF’s Five-Year Return Creaming the S&P 500]
For more more information on divided funds, visit our dividend ETFs category.
Max Chen contributed to this article.