LVHD debuted in late 2015 and has already attracted a solid following as highlighted by the ETF’s $127 million in assets under management. The ETF’s portfolio “is constructed of the highest scoring securities subject to concentration limits: no individual component of the Index will exceed 2.5%, no individual sector (as defined by QS) will exceed 25%, and real estate investment trust (“REIT”) components as a whole will not exceed 15%. The number of component securities in the Index is anticipated to range from 50 to 100,” according to Legg Mason.
At the end of the first quarter, LVHD had a 30-day SEC yield of 3.3%, which was well above the dividend yield on the S&P 500 and the yield on 10-year U.S. Treasuries. The weighted average market value of LVHD’s 81 holdings is almost $77 billion.
LVHD’s “index is close to 20 times trailing earnings today, up from only 8.4 times when the market bottomed in March 2009, the low point in the bear market and the beginning of the bull market,” according to MarketWatch.
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