Legg Mason begun trading the Legg Mason International Low Volatility High Dividend ETF (BATS: LVHI) on Thursday, July 28, 2016. Here is a synopsis of the new ETF:

 

FUND INFORMATION:

Symbol: LVHI	Exchange: BATS
Name: Legg Mason International Low Volatility High Dividend ETF	Net Expense Ratio: 0.40%

 

FUND OBJECTIVE:
The Legg Mason International Low Volatility High Dividend ETF seeks to track the investment results of the QS International Low Volatility High Dividend Hedged Index.
The fund will invest at least 80% ofits net assets, plus borrowings for investment purposes, if any, in securities that compose its Underlying Index. Securities that compose theUnderlying Index include depositary receipts representing securities in the Underlying Index.

 

REFERENCE INDEX:
The QS International Low Volatility High Dividend Hedged Index seeks to provide more stable income through investments in stocks of profitable companies in developed markets outside of the United States with relatively high dividend yields or anticipated dividend yields and lower price and earnings volatility, while mitigating exposure to exchange-rate fluctuations between the U.S. dollar and other international currencies (hedging). The Underlying Index is based on a proprietary methodology created and sponsored by QS, the fund’s subadviser. QS is affiliated with both LMPFA and the fund.

The Underlying Index is composed of equity securities in developed markets outside of the United States across a range of market capitalizations that are included in the MSCI World ex-US IMI Index. Stocks in the Underlying Index must have demonstrated profitability over the last 4 fiscal quarters as a whole. Only stocks that have paid or are anticipated to pay a dividend are included in the Underlying Index. The methodology calculates a composite “stable yield” score, with the yield of stocks with relatively high price volatility (as measured over the past 12 months based on the standard deviation of daily returns) and earnings volatility (as measured by the variation of past earnings and projected earnings) and from countries with relatively high interest rates adjusted downward and the yield of stocks with relatively low price volatility and earnings volatility and from countries with relatively low interest rates adjusted upward. The Underlying Index will also take into account foreign withholding taxes on dividend payments to minimize their impact on distribution yield. Underlying Index weights are calculated to maximize its stable yield score subject to concentration limits, liquidity requirements and turnover restraints. QS anticipates that the number of component securities in the Underlying Index will range from 50 to 200 but this number may vary due to market conditions. As initially constituted and balanced, no individual component of the Underlying Index will exceed 2.5% of the Underlying Index, no individual sector (as defined by QS) will exceed 25% of the Underlying Index, nocountry (as defined by QS) will exceed 15% of the Underlying Index, no individual geographic region (as defined by QS) will exceed 50% of the Underlying Index and real estate investment trust (REIT) components as a whole will not exceed 15% of the Underlying Index. The Underlying Index’s components are reconstituted annually and rebalanced quarterly. The fund’s securities portfolio is rebalanced when the Underlying Index is rebalanced or reconstituted. The composition of the Underlying Index and the fund after reconstitution and rebalancing may fluctuate and exceed the above Underlying Index limitations due to market movements.

 

Fund Top Consituents (07/29/16):

ASTRAZENECA PLC	2.96%
TOYOTA MOTOR CORP	2.75%
GLAXOSMITHKLINE PLC	2.68%
BAYERISCHE MOTOREN WERKE AG	2.65%
RED ELECTRICA CORPORACION SA	2.64%
TELSTRA CORP LTD	2.61%
DAIMLER AG REGISTERED SHARES	2.60%
BASF SE	2.58%
SWISSCOM AG REG	2.52%
SINGAPORE TELECOMMUNICATIONS	2.52%

 

 

Useful Links:
LVHI Home Page

 

 

Category: Equities> International Equities> International Dividends