Victory Capital has launched the VictoryShares Dividend Accelerator ETF (VSDA), which is now trading on the Nasdaq Stock Market.
The ETF seeks to provide investment results that track the performance of the Nasdaq Victory Dividend Accelerator Index (NQVDIV), which Victory Capital developed in partnership with Nasdaq.
The index uses fundamental criteria, including proven earnings stability, to select companies with the highest likelihood of consistently growing dividends year over year. It seeks to identify those companies early in their lifecycles and assemble them in a rules-based portfolio that emphasises growing dividends per share.
“Today’s investors are looking for innovative and differentiated ways to capture income,” says Mannik Dhillon, president, VictoryShares and Solutions. “We are pleased to work with Nasdaq to develop a strategy that we believe offers investors the opportunity to grow dividend income over time.”
The VictoryShares ETF platform is designed to provide investors with rules-based solutions that bridge the gap between the active and traditional passive elements of their portfolios. The expanded product line builds upon the success of the VictoryShares volatility-weighted ETFs, which have grown to more than USD1.2 billion in AUM as of 31 March 2017.
Victory Capital announced earlier this year that it plans to launch a series of new ETFs that tracks indexes developed with Nasdaq. The expanded platform will seek to offer strategic beta strategies designed to provide a variety of outcomes, including maximum diversification, dividend income, downside protection, minimum volatility and targeted factor exposure.
“We start by identifying a desired client outcome, such as income growth or bear market mitigation, and build intuitive, index-based solutions to address those objectives,” says Dhillon.
“Nasdaq is committed to creating powerful strategies and methodologies for key investment growth areas including potentially enhancing dividend income,” says Dave Gedeon, vice president and head of research & development at Nasdaq Global Indexes. “We are excited to work with VictoryShares to provide a world-class index for the benchmark in this important market segment that is designed to help generate an outcome of consistent and growing dividends per share on an index level.”