SGQI: New International Dividend ETF launched by Janus

CLOSED 05/17/2018

Janus Capital Group, Inc., begun trading a new international dividend ETF, the Janus SG Global Quality Income ETF (Nasdaq: SGQI), on Thursday, December 08, 2016. Here is a synopsis of the new ETF:


Symbol: SGQI Exchange: NASDAQ
Name: Janus SG Global Quality Income ETF   Net Expense Ratio: 0.45%


The Janus SG Global Quality Income ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the SGI Global Quality Income Index (NTR-USD).

The SGI Global Quality Income Index (NTR-USD) is systematic and rules-based and is designed to track the performance of quality companies globally that have attractive and sustainable dividends. The Underlying Index is constructed based on the premise that in the long run, quality companies that pay sustainable and higher dividends are a more reliable source of return than companies that take higher risks. The Underlying Index selects stocks from an investment universe of non-financial companies having a free-float adjusted market capitalization of at least $3 billion times an adjustment factor from developed countries. From this universe, Société Générale (Index Provider) applies its rules-based methodology which assesses companies on a range of factors designed to identify the quality of a company’s business, its creditworthiness, and its ability to provide attractive and sustainable dividends. To meet the business quality criteria, a stock must score at least 7 out of 9 factors designed to indicate the quality of a company’s business, such as its return on assets and cash flow from operations. To meet the creditworthiness criteria, a stock must rank in the top 40% of all securities in the eligible universe using a “distance to default” methodology, which seeks to identify the financial health of a company. To meet the dividend yield criteria, a stock must have a dividend yield greater than the higher of 4% or 125% of the market cap-weighted dividend yield of the eligible universe.

Under normal circumstances, the Fund expects to invest substantially all of its assets in securities included in the Underlying Index, using a replication strategy. The number of stocks within the Underlying Index will generally range between approximately 25 and 75. The Underlying Index, and therefore the Fund, may invest without limit in non-US securities. Conversely, there is no minimum requirement for non-US securities in the Underlying Index. Because the Fund seeks to track the Underlying Index, the amount of non-US securities in the Fund will vary over time, based on the composition of the Underlying Index at that time.
The Underlying Index is reconstituted on a quarterly basis, rebalanced on a quarterly basis.  The underlying securities are weighted equally within the Underlying Index.


Fund Top Holdings (12/16/16):

Tatts Group Ltd 3.13%
Six Flags Entertainment Corp 2.98%
DUET Group 2.98%
Agrium Inc 2.96%
Altria Group Inc 2.92%
AGL Energy Ltd 2.85%
PPL Corp 2.85%
Inter Pipeline Ltd 2.84%
AT&T Inc 2.83%
Dominion Resources Inc/VA 2.83%


Useful Links:
SGQI Home Page


Category: Equities> International Equities> International Dividends


ETFtrack comment:
Here is a comment from Nick Cherney, Senior Vice President and Head of Exchange Traded Products for Janus Capital Group:
“We are committed to helping clients build portfolios which have the potential to outperform or reduce risk relative to market cap weighted alternatives, and when it comes to the search for yield, finding quality income should be a key component. The SGI Global Quality Income Index has been the underlying index for an ETF in Europe for more than three years, and we’re pleased to bring this strategy to the U.S. market.”

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