As inflationary pressures persist and investors feel the effects of tighter monetary policy and increased market volatility, it is an ideal time to reassess the perks of dividend growth investing.
In the upcoming webcast, Why Dividend Growth Matters in Today’s Market Environment, David Park, portfolio manager at Nuveen, and Shana Martin, product management and development at Nuveen, will dive into the potential long-term benefits of dividend growth investing and how investors can leverage this asset class to mitigate the effects of market volatility and elevated inflation.
Specifically, the actively managed Nuveen Dividend Growth ETF (NYSE Arca: NDVG) focuses on top mid- to large-cap companies that have the potential for sustainable dividend growth and provides a total return based on income and capital appreciation while also reducing risk exposure.
As some sectors typically yield higher dividends than others, the ETF can have greater exposure to the higher dividend-yield sectors and industries than the broader market at times. It defines dividend-paying assets as those that have paid dividends in the previous twelve months or have announced that they will be paying dividends within the next 12 months.
NDVG is also among the new breed of so-called semi-transparent ETFs that does not provide daily disclosure of its underlying holdings in a bid to better protect its secret sauce against potential front runners trying to get ahead of the active strategy.
According to Nuveen, this ETF will provide less information to traders. The ETF will publish on its website each day a Proxy Portfolio designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF’s holdings, it is not the ETF’s actual portfolio.
“The differences between this ETF and other ETFs may also offer advantages. By keeping certain information about the ETF secret, this ETF may face less risk than other traders can predict or copy its investment strategies. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategies, however, this may hurt the ETF’s performance,” according to Nuveen.
Financial advisors who are interested in learning more about dividend growth strategies can register for the Thursday, October 6 webcast here.