An Outperforming Active Dividend ETF Strategy

With growing risks in over valued segments of the markets, income-minded investors may look to an actively managed dividend exchange traded fund to target potentially better picks.

The AdvisorShares Athena High Dividend ETF (NYSEArca: DIVI) has returned 30.0% over the past year, compared to the S&P 500’s 25.0% rise and the MSCI ACWI ex-USA Index’s 19.3% gain.

The actively managed high dividend ETF can help investors generate high income potential, capture capital growth and diversify through global exposure.

According to AdvisorShares, the high-dividend focus may also help diminish the potential issue of portfolio devaluation in periods of rising interest rates and achieve capital growth, which can hedge against inflation with growing income and growing capital. The strategy may be beneficial in the year ahead, as President Donald Trump’s economic policies could fuel inflation and the Federal Reserve looks to hike interest rates in an attempt to head off an overheating economy.

DIVI takes an interesting approach to dividend stocks, selecting all manner of yield generating equities that have already been vetted by active mutual fund managers.