U.S. stocks account for 49% of the index’s weight with Japanese issues garnering almost 12%. Emerging markets exposure in ROGS looks to be most conservative with South Korea, Taiwan and China combining for nearly 15% of the new ETF’s underlying index’s weight. South Korea and Taiwan are two of the lowest beta emerging markets.
The Lattice Risk-Optimized Global Small Cap Strategy Index has a dividend yield of 3.73%, triple the trailing 12-month yield on the Russell 2000. “From the end of 2013 there has been a 10.2% increase in the number of issues paying a dividend in the S&P SmallCap 600,” according to S&P Dow Jones Indices. [Small-Cap ETFs Offer Dividend Growth]
The Lattice Risk-Optimized Global Small Cap Strategy Index’s top sector weights are nearly 25% to financial services, 18.3% to consumer discretionary and 18.1% to industrials. ROGS charges 0.6% per year.
For its part, Lattice has found quick success in the ETF space. It has only been 18 trading days since the Lattice Emerging Market Strategy ETF (NYSEArca: ROAM), Lattice Developed Markets (ex-US) Strategy ETF (NYSEArca: RODM), and the Lattice US Equity Strategy ETF (NYSEArca: ROUS) came to market, but those ETFs now combine for over $50 million in assets under management. [Lattice Launches Three ETFs]