Apple is not a member of PKW’s almost 200-stock lineup. Nor is the iPad maker a dominant presence in the Cambira Shareholder Yield ETF (NYSEArca: SYLD). The newly minted, actively managed SYLD has gained 4% since its May debut and currently features a weight of just 0.91% to Apple. [Active ETFs Gain Momentum]
SYLD is off to a fast start with $125 million in assets under management, but the ETF focuses on more than just buybacks. “Specifically, SYLD invests in 100 stocks with market caps greater than $200 million that rank among the highest in (a) paying cash dividends, (b) engaging in net share repurchases, and (c) paying down debt on their balance sheets,” according to Cambria.
“Overall, companies continued to protect their earnings from dilution due to option execution with the actual share count slightly ticking down,” noted Silverblatt in the S&P Capital IQ note. “The data, however, show that there was a wide mix – 242 issues increasing their diluted share count compared to 225 issues reducing them. Significant changes (generally considered 1% or greater) favored reductions, as 90 issues reduced their count by at least 1%, with 58 issues increasing them at least 1%.”
S&P Capital IQ rates both ETFs marketweight. Although PKW is passively managed, SYLD is slightly cheaper with an expense ratio of 0.59% per year compared to 0.71% for PKW. The two share at least one thing in common: Large allocations to the consumer discretionary sector. That sector, which has been a prodigious raiser of dividends in recent years, accounts for 17% of SYLD and 34% of PKW.
Cambria Shareholder Yield ETF