Dividend, Low-Vol ETFs That Tap Into Value Line Research | ETF Trends

Investors can now find Value Line research implemented in a group of new dividend and low-volatility exchange traded funds to potentially improve a portfolio’s risk-adjusted returns.

In March, Direxion Investments partnered with Value Line Research to launch the Direxion Value Line Small- and Mid-Cap High Dividend ETF (NYSEArca: VLSM), Direxion Value LineMid- and Large-Cap High Dividend ETF (NYSEArca: VLML) and the Direxion Value Line Conservative Equity ETF (NYSEArca: VLLV). [Direxion Expands Non-Leveraged Lineup With Dividend ETFs]

On the recent webcast, Value Line Research Powering ETF Strategies, Jeff West, Global Index and Data Products Executive for Value Line, outlined how Value Line has helped provide investors with high quality, cost-effective research since 1931.

“We deliver to our clients timely, accurate, and unbiased information in a format that integrates fundamental equity research with quantitative disciplines,” West said.

The new Direxion dividend ETFs will put the Value Line research team’s experience to good use, utilizing the Value Line Timeliness Ranking System, Safety Ranking System and Performance Ranking System.

Dr. George Gu, head of the Value Line Quantitative Research, explained how the Timeliness Ranking System is based on relative earnings rank, relative earnings momentum, valuation measured by cash flow to price, relative price rank, relative price momentum and potential earnings surprises. The Safety Ranking System measures the total risk of a stock relative to approximately 1,700 other stocks based on a stock’s Price Stability score and Financial strength rating. Lastly, the Performance Ranking System measures the likely price performance of more than 1,800 stocks over the next six to 12 months, accounting for relative earnings and price, recent earnings and price changes.

Potential investors should be aware that the Direxion ETFs may implement different Ranking Systems. Specifically, VLSM and VLML both include Value Line’s Timeliness, Performance and Safety Ranks. VLLV, on the other hand, only includes Value Line’s Safety Rank to capture a group of stocks that exhibit low volatility.