Bringing you live news and features since 2006 

Horizons ETFs US and Cadence launch Hedged US Dividend Yield ETF


Horizons ETFs Management, in partnership with Cadence Capital Management (Cadence), has launched Horizons Cadence Hedged US Dividend Yield ETF on the Cboe BZX Exchange under the symbol USDY.

Co-managed by Cadence and Horizons, USDY is a multi-factor ETF that seeks income and long-term growth of capital, with a strategy that seeks to potentially provide a measure of downside protection through the use of index options.
Developed for investors seeking income, long-term growth of capital and reduced volatility, the Horizons Cadence Hedged US Dividend Yield ETF invests in the dividend-paying stocks of large-cap companies within the market capitalisation range of the Russell 1000 Index. USDY focuses on factors such as financial quality, company’s history in meeting earnings, dividend targets and earnings quality to create its portfolio. Hedging with index options seeks to provide lower overall portfolio volatility and enhance the risk-adjusted return profile for USDY. The hedge is achieved through a Collar or sale of an out-of-the-money Index Call option with proceeds going to the purchase of an out-of-the-money Index Put Option. 
“The launch of USDY further exemplifies our ongoing commitment to offer investors unique approaches to sourcing income and alpha,” says Garrett Paolella, Managing Director at Horizons US. “Cadence is an industry leader with approximately USD4.6 billion in assets that’s been managing yield-oriented equity strategies for institutional investors since 1988. They are an ideal partner for Horizons ETFs US and we are excited to continue developing this partnership through our joint commitment to launching innovative and value-added products.”
“We are thrilled to be working with Horizons ETFs Management (US) on the launch of USDY. Their global reach through Mirae Asset Global Investments and dedication to providing investors with a unique approach to sourcing income and alpha makes them an ideal partner,” says Michael Skillman, CEO of Cadence Capital Management. “Combining our 30-years of investment experience and philosophy with Horizons’ ability to design easy-to-use products that meet diverse investment needs, we believe USDY will be an essential tool for investors seeking income and reduced volatility.”

Latest News

BlackRock's iShares, an undisputed leader among European ETF issuers, pushed further ahead in Q1 with EUR173 billion in trades, triple..
European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs’ share of the US ETF market rose to 8.5 per cent at the...
Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by