The FlexShares Quality Dividend Dynamic Index Fund is one of the newer entrants to the dividend ETF arena, but with the cyclical rotation gaining steam, QDYN’s time to shine may have arrived. QDYN, which debuted in December, tries to reflect the performance of the Northern Trust Quality Dividend Dynamic Index, which has a targeted overall beta that is between 1.0 to 1.5 times that of the parent index. [FlexShares Adds New Dividend ETFs]
Staples and utilities names combine for over 13% of QDYN’s weight and while that may seem like a high number, consider that all four of the ETF’s top sector weights are valid cyclical rotation plays. That group is comprised of financials, technology, energy and consumer discretionary.
As is the case with DLN, QDYN offers plenty of exposure to the financials and technology dividend growth themes as those are the ETF’s two largest sectors and combine for over 36% of the fund’s weight. The fund has a weighted averaged dividend yield of 3.34% and a weighted average beta of 1.22, according to FlexShares data.
FlexShares Quality Dividend Dynamic Index Fund
ETF Trends editorial team contributed to this piece.