Just 18 months after coming to market, the WBI Power Factor High Dividend ETF (NYSEArca: WBIY), a multi-factor smart beta ETF, topped $50 million in assets under management.
WBIY, which tries to reflect the performance of the Solactive Power Factor High Dividend Index, selects securities from the broader Solactive US Broad Market Index that exhibit certain yield and fundamental value characteristics.
“WBIY is an advanced multi-factor Smart Beta ETF providing investors with a powerful combination of high dividend yield and high-quality fundamentals,” according to a statement from New Jersey-based WBI Investments, Inc.
As of June 22, WBIY had $51.18 million in assets, according to issuer data.
Inside WBIY
WBIY’s underlying index screens for equity securities with an above-average forecasted dividend yield and further scores components based on three fundamental value characteristics, including price to trailing 12-month diluted earnings from continuing operations ratio, price to trailing 12-month free cash flow and price to trailing 12-month sales ratio.
None of the ETF’s holdings account for more than 5.07% of the fund. Top 10 holdings include Williams Cos. (NYSE: WMB), For Motor Co. (NYSE: F) and Dow components Exxon Mobil Corp. (NYSE: XOM), Intel Corp. (NYSE: INTC) and Pfizer Inc. (NYSE: PFE).
Related: Looking to Smart Beta ETFs as Rates Rise
The fund has a 30-day SEC yield of 4.75%. From June 1, 2017 through May 31, 2018, WBIY returned 19.3%, or more than double the returns of the Russell 3000 Value Index over the same period.
“As of May 31, 2018, WBIY 1-year total returns outperformed the S&P 500 and 99% of its peers in the Morningstar Large Value category, which includes 1,269 funds, for the 1-year period,” according to WBI. “The fund has generated a one-year return of 19.35% in market price and 19.27% in net asset value as of 5/31/18, compared to the S&P 500’s return of 14.38%.”
WBIY’s overweight sector allocations include consumer discretionary, telecommunications and utilities. The ETF’s annual expense ratio is 0.70%, or $70 on a $10,000 investment.
For more on smart beta ETFs, visit our Smart Beta Channel.