RevenueShares has expanded its family of exchange-traded funds (ETFs) with the launch of the RevenueShares Ultra Dividend Fund (NYSEARCA:RDIV), which provides exposure to the 60 highest yielding dividend stocks in the S&P 900.
“Research from VTL Associates, our parent company, found that a revenue-weighted dividend index may both offer a higher yield and potentially outperform the S&P 500 Index over time.”
As the first revenue-weighted dividend ETF, RDIV is positioned to potentially capture the capital appreciation benefits of revenue-producing companies while operating with a goal of providing income-focused investors the yield they seek.
RDIV tracks an index (the RevenueShares Ultra Dividend Index™) that yields 4.92%, as of September 30, 2013.
The index is weighted by top-line company revenue to emphasize constituents with high current yields that can be expected to drive price appreciation and dividend growth. RDIV is diversified among growth and income-oriented market sectors, as well as among large- and mid-cap companies.
“Dividends have been a reliable source of income in today’s low interest rate environment. The RevenueShares Ultra Dividend Fund strives to invest in the highest yielding stocks with weighting preference given to the strongest revenue producers,” says Vince Lowry, CEO of RevenueShares. “Research from VTL Associates, our parent company, found that a revenue-weighted dividend index may both offer a higher yield and potentially outperform the S&P 500 Index over time.”
The S&P 900 index, which combines the constituent stocks of the S&P 500 and S&P 400, serves as RDIV’s benchmark index. The RevenueShares Ultra Dividend Index includes the 60 highest dividend yielding constituents of the S&P 900 index based on average quarterly yield over the previous 12 months. These holdings are then weighted by company revenue.
The RevenueShares Ultra Dividend Index, which is rebalanced quarterly and reconstituted yearly, is maintained by Standard & Poor’s.
The investment adviser for RDIV is VTL Associates. Index Management Solutions serves as sub-adviser to the fund.