Brian Jacobs, President of Direxion Investments, also pointed out that while VLSM and VLML employ Value Line research, the dividend ETFs will also single out stocks with historically higher income.
“The Fund is managed to employ a disciplined approach to balancing fixed income investments with historically higher income producing equity securities, with a focus on minimizing absolute risk and volatility,” Jacobs said. “In addition to targeting a consistent level of income for shareholders the Fund is also focused on creating a portfolio that offers the potential for both capital appreciation and preservation.”
The Value Line Dividend ETFs will include a decent mix of equities and dividend-paying stocks in an attempt to generate income and provide capital appreciation. Jacobs said that the funds’ general target allocation is about 40% equities and 60% dividends, but it may vary.
Lastly, VLLV mainly provides investors with a low-volatile exposure to the markets, along with some income generation.
“The Fund is managed to employ a disciplined approach to balancing fixed income investments with historically higher income producing equity securities, with a focus on minimizing absolute risk and volatility,” Jacobs added.
Financial advisors who are interested in learning more about the smart-beta dividend funds can listen to the webcast here on demand.