O’Shares, begun trading a new International Quality Dividend ETF, the O’Shares FTSE Russell International Quality Dividend ETF (NyseArca: ONTL), on Wednesday, March 22, 2017. Here is a synopsis of the new ETF:
FUND INFORMATION:
| Symbol: ONTL | Exchange: NYSE ARCA |
| Name: O’Shares FTSE Russell International Quality Dividend ETF | Net Expense Ratio: 0.48% |
FUND OBJECTIVE:
The O’Shares FTSE Russell International Quality Dividend ETF seeks to track the performance (before fees and expenses) of the FTSE Developed ex US Qual/Vol/Yield 5% Capped Factor Index.
REFERENCE INDEX:
The FTSE Developed ex US Qual/Vol/Yield 5% is designed to reflect the performance of publicly-listed large capitalization and mid-capitalization dividend-paying international issuers exhibiting high quality, low volatility and high dividend yields, as determined by FTSE-Russell (Index Provider’). The quality and low volatility factors are designed to reduce exposure to high dividend equities that have experienced large price declines, as may occur with some dividend investing strategies. The constituents of the International Target Index are selected from the FTSE Developed ex US Index.
As of November 30, 2016, the International Target Index consisted of 462 securities with a market capitalization range of between $359.1 million and $207.1 billion, with an average market capitalization of $53.4 billion. The International Target Index is constructed using a proprietary, rules-based methodology designed to select equity securities from the FTSE Developed ex US Index that have exposure to the following 3 factors:
1) quality,
2) low volatility and
3) yield.
The ‘‘quality’’ factor combines measures of profitability (return on assets, asset turnover ratio and accruals) and leverage. The ‘‘low volatility’’ factor is calculated using the standard deviation of 5 years of weekly local total returns. The ‘‘yield’’ factor is calculated using the company’s 12 month trailing dividend yield. Consecutive ‘‘factor tilts’’ are applied to the equity securities in the FTSE Developed ex US Index, resulting in the re-weighting of the equity securities according to the scores assigned to these factors. Equity securities with the smallest product of factor scores are removed while ensuring that certain constraints (e.g., diversification, capacity, country and industry) are satisfied, thereby adjusting the final weights in the International Target Index. Individual index constituent weights are capped at 5% at each quarterly rebalance to avoid overexposure to any single security. The International Target Index’s investable universe includes real estate investment trusts (REITs).
Index Top Holdings (02/28/17):
| Nestle | 4.4% |
| Roche Hldgs | 3.6% |
| Novartis | 2.9% |
| British American Tobacco | 2.1% |
| Sanofi | 1.9% |
| Novo-Nordisk | 1.5% |
| BASF | 1.5% |
| GlaxoSmithKline | 1.4% |
| Royal Bank Of Canada | 1.4% |
| Anheuser-Busch InBev | 1.4% |
Index Sector Allocation (02/28/17):
| Consumer Staples | 18.7% |
| Health Care | 17.2% |
| Industrials | 13.5% |
| Consumer Discretionary | 9.3% |
| Financials | 8.5% |
| Real Estate | 7.4% |
| Materials | 7.1% |
| Telecommunication Services | 6.8% |
| Utilities | 6.4% |
| Energy | 2.8% |
| Information Technology | 2.3% |
Fund Country Allocation (02/23/17):
| United Kingdom | 15.72% |
| Switzerland | 14.70% |
| Japan | 12.56% |
| Australia | 9.74% |
| Canada | 9.73% |
| France | 7.60% |
| Germany | 6.39% |
| Sweden | 4.10% |
| Netherlands | 3.28% |
| Hong Kong | 3.04% |
Useful Links:
ONTL Home Page
Category: Equities> International Equities> International Dividends