The Bahl & Gaynor Income Growth ETF (NYSE Arca: BGIG) began trading on the New York Stock Exchange today. The actively managed ETF invests primarily in dividend-paying U.S.-listed equity securities of large-cap companies.
BGIG seeks current and growing dividend income, downside protection relative to the broader equity market, and long-term capital appreciation by investing in high-quality companies with sustainable advantages. The fund predominantly targets companies with a market cap greater than $7 billion.
See more: “Successful Active Equity ETF Managers to Answer Questions”
A Bottom-Up Approach
When selecting securities for the fund, Bahl & Gaynor takes a bottom-up approach that considers several factors. A company’s historical earnings and dividend growth, for example, are considered. Its balance sheet and cash flow generation are also factors.
Plus, the team assesses a company’s prospects for future cash flow and dividend growth. Sector weighting is based on Bahl & Gaynor’s assessment of company fundamentals, valuations, and overall economic conditions.
“Demand for high quality, cash flow generating investments has accelerated in 2023,” said VettaFi’s head of research Todd Rosenbluth. “Given the uncertainty about the economy and earnings, advisors have turned to strategies focused on stability.”
BGIG carries an expense ratio of 0.45%.
Advisors and investors are becoming increasingly open to spending a little more with actively managed ETFs. On Thursday, Sept. 21, leaders behind some strong-performing active equity ETFs will discuss these strategies during the VettaFi Equity Symposium.
For more news, information, and analysis, visit VettaFi | ETF Trends.