A recently launched active high-dividend exchange traded fund tries to generate outsized returns through focusing on so-called high-conviction stock picks from among the top fund managers while screening for attractive dividends.
The AdvisorShares Athena High Dividend ETF (NYSEArca: DIVI), which was launched on July 29 and is managed by Dr. Thomas Howard of AthenaInvest Advisors, utilizes behavioral finance to identify component stocks. [AdvisorShares Introduces New High Dividend ETFs]
While the ETF is new, Howard reportedly generated annualized returns of 29.2% over the past five years ended April 30 in his aggressive growth portfolio, writes Charles Sizemore for Forbes.
DIVI selects stocks that are held in the top relative weight positions by active fund investment managers, screens for high dividend securities and allocates by dividend weights.
Compared to other large index-based dividend ETFs, DIVI has a global reach, including exposure to U.S., developed international and emerging market equities, and states that “global diversification” is part of its mandate.
Additionally, compared to other broad dividend ETFs, DIVI also includes real estate investment trusts, mortgage REITs, master limited partnerships, closed-end funds and business development companies, which are all known for their attractive yields.