The equal-weight index “is composed of 50 small- and mid-cap securities selected using criteria based on Value Line’s Timeliness1, Performance2, and Safety Ranks3, and the Financial Strength Rating,” according to Direxion. Value Line reviews the index weekly and stocks will be removed if their financial health rapidly weakens or if their Value Line safety and timeliness ranks fall. [New Avenue to Mid-Cap Dividends]
VLML, which has returned 2.6% since coming to market, follows the Value Line Mid- and Large-Cap High Dividend Yield TR Index (VLMLDT). At the end of the first quarter, that ETF’s largest sector weights were 17.3% to materials, 16% to financial services and 12.7% to consumer discretionary. VLML’s top 10 holdings include AT&T (NYSE: T), Altria (NYSE: MO) and Caterpillar (NYSE: CAT).
The Direxion Value Line Conservative Equity ETF tracks the Value Conservative Equity TR Index (VLCET), which is based on Value Line’s proprietary safety rank. The Safety rank measures the total risk of a stock and its defensive capability during an overall equity market downturn relative to the other stocks in the Value Line universe, according to Direxion.
That ETF equal weights 140 stocks and features an almost 18.7% weight to healthcare names followed by a nearly 17% allocation to consumer staples. VLLV’s holdings currently include AT&T, Abbott Labs (NYSE: ABT), Amgen (NasdaqGS: AMGN) and Apple (NasdaqGS: AAPL).
Advisors interested in attending the Wednesday June 10 webcast at 2PM Eastern time can register here.