“Dividend growth indicates that a company’s earnings and balance sheet are strong, and management is confident in its ability to distribute cash flow over time,” according to ProShares. “Cutting or suspending a dividend may signal less cash flow or too much debt on the books. Targeting the companies that have not only paid dividends but have consistently grown them over time might help you isolate the strongest performers.”
EUDV’s country tilts include U.K. 49.5%, France 11.6%, Switzerland 9.6%, Germany 5.8%, Denmark 5.8%, Spain 5.8%, Norway 4.1%, Netherlands 3.9%, Ireland 1.9% and Belgium 1.9%. Potential investors should be aware that the fund does not hedge currency risk, so people will be exposed to foreign exchange moves in the British pound 49.5%, euro 31.0%, Swiss franc 9.6%, Danish Krone 5.8% and Norwegian Krone 4.1%
Sector weights include industrials 19.5%, health care 17.6%, consumer staples 17.4%, consumer discretionary 13.7%, energy 8.3%, materials 7.9%, utilities 7.8%, financials 5.8% and information technology 2.0%.
There are currently 51 holdings and individual components are equally weighted, so the largest company only makes up 2.2% of the ETF and the top 10 holdings account for 20.4% of the overall portfolio.
For more information on new fund products, visit our new ETFs category.
Money managers who are looking into constructing their own ETFs may also be interested in attending the second annual ETF Boot Camp in New York later this month. Whether you’re an ETF start-up, fund company, broker dealer, pension plan, endowment, private equity firm, fund board independent director, 401k plan provider or ETF industry executive…this conference is designed for you. This one-of-a-kind event will condense everything you need to know about the inner workings of the ETF business into two days.
Max Chen contributed to this article.