WBI Investments’ WBI Power Factor High Dividend ETF (WBIY) has surpassed USD50 million in assets under management.
Introduced in December 2016, WBIY is an advanced multi-factor Smart Beta ETF providing investors with a powerful combination of high dividend yield and high-quality fundamentals.
“We believe dividends provide an untapped opportunity to receive supplemental income, especially as demographics shift and more investors enter retirement,” says Don Schreiber, J., founder and CEO of WBI. “We developed WBIY specifically for advisors to use with their clients to complement existing active and passive strategies. We’re pleased to see such a positive response to WBIY, especially so quickly, as more investors realise the impact dividends can have on their investment goals.”
WBIY is a thoughtfully constructed, cost-efficient ETF that is specially tailored for investors seeking more consistent capital growth with lower volatility and less risk. Designed to track the Solactive Power Factor High Dividend Index, selection is driven by WBI’s proprietary Power Factor model, which identifies the top 50 stocks with the highest yield and strongest fundamentals out of the 3,000 stocks in the Solactive all-cap US equity universe. As with all WBI ETFs, WBIY is structured to capture return while reducing the potential for incurring large bear market losses. The fund has an upside capture ratio of 114.68 and a downside capture ratio of 78.52 vs the S&P 500 for the 1-year period as of 5/31/18.
As of 31 May, 2018, WBIY 1-year total returns outperformed the S&P 500 and 99 per cent of its peers in the Morningstar Large Value category, which includes 1,269 funds, for the 1-year period. The fund has generated a one-year return of 19.35 per cent in market price and 19.27 per cent in net asset value as of 5/31/18, compared to the S&P 500’s return of 14.38 per cent. WBIY boasts a 30-Day SEC yield of 4.75 per cent (subsidised) and a dividend yield of 5.20 per cent — almost double the category average of 2.78 per cent. WBIY has deep underlying liquidity despite an average volume of 9,443, with a net expense ratio of 0.70 per cent. The fund is overweight sectors that are often overlooked, such as consumer discretionary, and underweight utilities and telecom. For standardised performance and 30-day SEC yields, see the fact sheet.
“WBIY’s strong results in just 18 months are indicative of the wealth-building investment strategies WBI has cultivated throughout its 30-year history: providing low volatility, low correlation, and an optimal blend of bear market capital preservation and bull market return,” says Matt Schreiber, WBI President and Chief Investment Strategist. “WBIY demonstrates the power of combining increasing investor capital flows with high-yielding stocks and reinvesting in dividends to improve compounding, an approach that maximises returns.”