DIVS Profile
The SmartETFs Dividend Builder ETF is designed to offer investors exposure to a portfolio of dividend-paying companies with a focus on those that demonstrate the potential to consistently increase their dividend payments over the medium term, typically three to five years. The fund's investment strategy centers on identifying companies that not only provide current dividend income but also have a track record or potential for growing their dividends in the future, reflecting their financial stability and commitment to returning value to shareholders.
Under normal market conditions, the fund will allocate at least 80% of its net assets, including any borrowings used for investment purposes, to publicly traded equity securities. These securities are selected based on the adviser’s assessment of their capacity to sustain and enhance dividend payouts. The universe of equity securities includes common stocks, preferred stocks, convertible securities, rights, and warrants, all of which are assessed for their dividend growth potential and overall financial health.
The fund aims to build a diversified portfolio of high-quality dividend-paying stocks that align with its objective of dividend growth. By focusing on companies with a robust dividend history and favorable growth prospects, the ETF seeks to provide investors with a reliable income stream while also positioning the portfolio for potential capital appreciation. This approach is designed to cater to income-oriented investors who value both current income and the potential for increased future dividends.
The SmartETFs Dividend Builder ETF differentiates itself by concentrating on companies that not only pay dividends but also have the financial strength and strategic outlook to increase their dividends over time. This focus on dividend growth is complemented by a rigorous selection process that evaluates each company's ability to maintain and enhance dividend payments. Investors should consider the fund's emphasis on dividend growth when evaluating its fit within their broader investment strategy and income needs.
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