RiverFront Investment Group, begun trading 2 new ETFs, the RiverFront Dynamic US Flex Cap ETF (NYSE Arca: DWFI) and the RiverFront Dynamic US Dividend Advantage ETF (NYSE Arca: RFDA) on Thuesday, June 07, 2015.
Here is a synopsis of the new ETFs:
1.
| Symbol: RFFC | Exchange: NYSE ARCA |
| Name: RiverFront Dynamic US Flex-Cap ETF | Net Expense Ratio: 0.52% |
FUND OBJECTIVE:
The RiverFront Dynamic US Flex-Cap ETF is an Actively Managed ETF and does not follow an index.Under normal market conditions, the Fund will seek to achieve its investment objective by investing at least 65% of its net assets in a portfolio of equity securities of publicly traded U.S. companies.Equity securities include common stocks and common or preferred shares of real estate investment trusts (REITs).
In selecting the Fund’s portfolio securities, RiverFront Investment Group, LLC, the Fund’s sub-adviser, assembles a portfolio of eligible securities based on several core attributes, including, but not limited to, value, quality and momentum. The Sub-Adviser will consider multiple proprietary factors within each core attribute, such as the price-to-book value of a security when determining value, a company’s cash as a percentage of the company’s market capitalization when determining quality and a security’s three month relative price change when determining momentum. The Sub-Adviser then assigns each qualifying security a score based on its core attributes and selects the individual securities with the highest scores for investment. In doing so, the Sub-Adviser utilizes its proprietary optimization process to maximize the percentage of high-scoring securities included in the portfolio. The Sub-Adviser will also consider the market capitalization of the companies in which the Fund may invest, and the trading volume of a company’s shares in the secondary market.
The Fund may invest in small-, mid- and large-capitalization companies. The Fund will normally invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities of U.S. issuers. The Fund considers a “U.S. issuer” to be one (i) domiciled or with a principal place of business or primary securities trading market in the United States, or (ii) that derives more than 50% of its total revenues or profits from the United States. The Fund may invest substantially in companies in the financial services sector. The Fund may also invest in other ETFs and/or closed-end funds which invest in equity securities.
Top Holdings (06/06/16):
| Apple Inc. | 4.00% |
| General Electric Co. | 2.48% |
| Amazon.com Inc. | 2.31% |
| Facebook Inc. | 2.21% |
| Alphabet Inc. | 2.21% |
| The Procter Gamble Co. | 2.19% |
| Alphabet Inc. | 2.17% |
| Intel Corp. | 1.80% |
| Philip Morris International Inc. | 1.79% |
| Exxon Mobil Corp. | 1.68% |
Useful Links:
RFFC Home Page
2.
FUND INFORMATION:
| Symbol: RFDA | Exchange: NYSE ARCA |
| Name: RiverFront Dynamic US Dividend Advantage ETF | Net Expense Ratio: 0.52% |
FUND OBJECTIVE:
The RiverFront Dynamic US Dividend Advantage ETF is an Actively Managed ETF and does not follow an index. Under normal market conditions, the Fund will seek to achieve its investment objective by investing at least 65% of its net assets in a portfolio of equity securities of publicly traded U.S. companies with the potential for dividend growth. Equity securities include common stocks and common or preferred shares of real estate investment trusts (REITs).
In selecting the Fund’s portfolio securities, RiverFront Investment Group, LLC, the Fund’s sub-adviser, assembles a portfolio of eligible securities based on several core attributes, including, but not limited to, value, quality and momentum. The Sub-Adviser will consider multiple proprietary factors within each core attribute, such as the price-to-book value of a security when determining value, a company’s cash as a percentage of the company’s market capitalization when determining quality and a security’s three month relative price change when determining momentum. Additionally, within a given sector, security selection will emphasize companies offering a meaningful dividend yield premium over alternative investments within that sector. This dividend yield emphasis is subject to quality screens intended to limit exposure to companies whose financial characteristics suggest the potential for dividend cuts.
The Sub-Adviser then assigns each qualifying security a score based on its core attributes, including its dividend growth score, and selects the individual securities with the highest scores for investment. In doing so, the Sub-Adviser utilizes its proprietary optimization process to maximize the percentage of high-scoring securities included in the portfolio. The Sub-Adviser will also consider the market capitalization of the companies in which the Fund may invest, the potential for dividend income, and the trading volume of a company’s shares in the secondary market.
The Fund may invest in small-, mid- and large-capitalization companies. The Fund will normally invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities of U.S. issuers. The Fund considers a “U.S. issuer” to be one (i) domiciled or with a principal place of business or primary securities trading market in the United States, or (ii) that derives more than 50% of its total revenues or profits from the United States. The Fund may invest significantly in companies involved in the financial services sector. The Fund may also invest in other ETFs and/or closed-end funds which invest in equity securities.
Top Holdings (06/06/16):
| Apple Inc. | 4.78% |
| General Electric Co. | 3.08% |
| Amazon.com Inc. | 2.89% |
| Facebook Inc. | 2.75% |
| The Procter Gamble Co. | 2.72% |
| Alphabet Inc. | 2.68% |
| Alphabet Inc. | 2.61% |
| Philip Morris International Inc. | 2.20% |
| Allergan plc | 2.20% |
| Visa Inc. | 2.15% |
Useful Links:
RFDA Home Page