Advisors Asset Management To Launch Its First Two ETFs Soon

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August 1, 2017 1:52pm NYSE:DEM

Advisors Asset Management has filed with the SEC to launch its first two ETFs, both of which will be dividend focused — one at home, and the other abroad.

Monument, Colorado-based AAM has been in the financial services industry since back in 1979, and offers a number of mutual funds, structured products, and other vehicles, but hasn’t gotten into the ETF game until now.

Its first fund, the AAM S&P 500 Sector High Dividend ETF, will track an S&P 500-linked index that targets stocks with high yields and steady dividend payouts. Here’s more info from the SEC filing:

The Index is a rules-based, equal-weighted index that is designed to provide exposure to the constituents of the S&P 500® Index that exhibit both high dividend yield and sustainable dividend distribution characteristics, while maintaining diversified sector exposure. The Index was developed in 2017 by S&P Dow Jones Indices, a division of S&P Global. The S&P 500 Index consists of approximately 500 leading U.S.-listed companies representing approximately 80% of the U.S. equity market capitalization.

The fund’s equal weighting and emphasis on free cash flow, along with sector distribution, could combine to make it an attractive investment for many income-seekers.

The second fund, the AAM S&P Emerging Markets Sector High Dividend ETF uses a similar strategy, but tracks a foreign-focused index based on the S&P Emerging Plus LargeMidCap Index.

The emerging markets fund will compete with the largest high-yield EM ETF, the $1.86 billion WisdomTree Emerging Markets High Dividend Fund (NYSE:DEM), which was trading at $42.92 per share on Tuesday afternoon, up $0.13 (+0.30%). Year-to-date, DEM has gained 16.16%, versus a 11.66% rise in the benchmark S&P 500 index during the same period.

DEM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #5 of 77 ETFs in the Emerging Markets Equities ETFs category.

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