ProShares has launched the ProShares MSCI EAFE Dividend Growers ETF (EFAD), the first exchange-traded fund that invests in the companies in the MSCI EAFE Index with the best track record of consistent year-over-year dividend growth.
EFAD, which is listed on NYSE Arca, tracks the MSCI EAFE Dividend Masters Index.
“Dividend growth can be an indicator of a company’s financial strength and return potential. In fact, companies in the EAFE index that grew dividends historically produced better returns with lower volatility than the EAFE itself,” says Michael L Sapir, chairman and CEO of ProShare Advisors. “We are pleased to offer an ETF that isolates the companies with the longest track record of dividend growth in the EAFE, the most popular international developed markets index.”
Investors have already demonstrated strong interest in a similar dividend growth strategy for the most popular US equity index, the S&P 500. The ProShares S&P 500 Aristocrats ETF (NOBL) is the only ETF that isolates the S&P 500 companies with the best track record of consistent year-over-year dividend growth. It has gathered more than USD230 million in assets since its October 2013 launch.
“The MSCI Dividend Masters Indexes are yet another example of our ability to deliver innovative products to meet the increasingly sophisticated needs of our clients. We look forward to continuing to work with ProShares as they expand their Dividend Growers ETF offering,” says Diana Tidd, managing director and head of the MSCI index business in the Americas.
The MSCI EAFE Dividend Masters Index holds MSCI EAFE companies that have grown their dividends for at least 10 consecutive years. The index is equally weighted and contains a minimum of 40 stocks. No single sector may represent more than 30 per cent of the index and no single country may represent more than 50 per cent. The index is rebalanced each February, May, August and November, with annual reconstitution during the November rebalance.