TBG Profile
The TBG Dividend Focus ETF is a strategically managed investment fund that aims to capitalize on dividend growth opportunities within the U.S. equity market. The fund's investment process begins with identifying large-, mid-, and small-cap U.S. companies that offer dividend yields exceeding the average yield of the S&P 500 Index. This initial screening ensures that the fund focuses on companies with competitive dividend yields that are poised to deliver consistent income to investors.
Utilizing a bottom-up, fundamental analysis approach, the fund screens for companies with the potential to increase their dividends by more than 5% annually over a 5- to 7-year market cycle. The selection criteria emphasize companies that have a proven track record of growing free cash flows, earnings, and dividends, while also maintaining strong financial health. Additionally, the quality and reputation of a company's management team are considered, as effective leadership is crucial for sustained dividend growth.
The actively managed portfolio of the TBG Dividend Focus ETF typically consists of 30 to 40 carefully selected companies, providing targeted exposure to dividend growth stocks. The fund's management team has full discretion to adjust the portfolio by buying, holding, or selling securities based on evolving market conditions and investment opportunities. This flexibility allows the fund to adapt its holdings to capitalize on changing market dynamics and investment trends.
In addition to its core investment strategy, the fund may also engage in securities lending, with up to one-third of its total assets potentially used for this purpose. This practice aims to enhance returns by generating additional income from lending securities to other market participants. Overall, the TBG Dividend Focus ETF offers investors a focused approach to dividend growth investing, combining fundamental analysis with active management to pursue robust long-term income and capital appreciation.
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