DVND Profile
The Touchstone Dividend Select ETF is an actively managed fund designed to invest primarily in dividend-paying U.S. large-cap companies. Under normal market conditions, the fund commits at least 80% of its assets to equity securities of these large-cap firms, which are known for their consistent dividend payments. The securities in which the fund invests may be listed on major exchanges or traded over-the-counter, providing broad exposure to prominent dividend-paying stocks across the U.S. equity market.
The selection process for the fund involves identifying large-cap companies with a history of reliable dividend payments. This strategy aims to provide investors with income through dividends while also seeking capital appreciation from the underlying equity holdings. The focus on large-cap companies ensures that the fund targets more established and financially stable firms, which are typically better positioned to sustain dividend payments during varying market conditions.
In addition to its core investment strategy, the fund may occasionally hold a reduced number of securities and increase its allocation to cash and cash equivalents. This adjustment can occur when the Sub-Advisor determines that there are insufficient securities meeting its investment criteria. This flexibility allows the fund to avoid holding securities that do not meet its rigorous standards for dividend payments or financial stability, thus aiming to preserve capital and manage risk effectively.
Overall, the Touchstone Dividend Select ETF seeks to offer a stable source of dividend income combined with the potential for capital growth. Its focus on large-cap dividend-paying stocks and strategic cash management reflects a disciplined approach to investing, designed to deliver attractive returns while mitigating some of the risks associated with equity investments.
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