Emerging Global Advisors, an asset management company focused exclusively on emerging markets and the sub-advisor to the EGShares family of exchange-traded funds (ETFs), has renamed its EGShares High Income/Low Beta ETF as the EGShares Low Volatility Emerging Markets Dividend ETF. The fund’s NYSE Arca ticker "HILO" remains unchanged, as does the fund’s methodology.
HILO, a passively managed ETF composed of low volatility stocks, is designed to provide high dividend income but have lower volatility than the MSCI Emerging Markets Index. The fund seeks to replicate the INDXX Low Volatility Emerging Markets Dividend Index, a composite of 30 stocks from 13 emerging markets countries, which has a yield of 6.79 percentiii. HILO does not use options, swaps, or other derivatives in its portfolio.
"HILO is the first emerging markets equity ETF based on an index whose design addresses both dividend yield and volatility," says Robert C Holderith, EGA’s founder and president. "We renamed the fund EGShares Low Volatility Emerging Markets Dividend ETF to address the conversation most pertinent to investors."