Absolute Shares Trust has added onto its WBI suite with its first smart-beta, index-based exchange traded fund that focuses on high dividend-yielding stocks.
On Wednesday, Absolute Shares launched the WBI Power Factor High Dividend ETF (NYSEArca: WBIY). WBIY has a 0.67% gross expense ratio.
“We’re introducing a smarter approach for yield starved investors at a time when the need for consistent capital growth and capital preservation is absolutely critical,” Don Schreiber, founder and CEO of WBI and co-author of All About Dividend Investing (McGraw Hill 2011), said in a note. “As investors rush into the high-yield dividend space, we feel that WBIY will provide them with a smarter approach that pairs the search for high yielding stocks with a preference for only those companies with the strongest fundamentals.”
The Power Factor High Dividend ETF will try to reflect the performance of the Solactive Power Factor High Dividend Index, which selects securities from the broader Solactive US Broad Market Index that exhibit certain yield and fundamental value characteristics.