Boston-based Eventide Asset Management has made its ETF debut with the launch of an actively managed US equities fund focused on high-dividend companies recognized for making positive societal contributions.
The Eventide High Dividend ETF (ELCV US) has been listed on NYSE Arca with an expense ratio of 0.49%.
Dolores Bamford, Co-Chief Investment Officer at Eventide Asset Management, commented: “Our strategy is simple yet profound – businesses with good products and good practices that are led by good people will naturally produce good profit.”
Investment approach
Benchmarked against the Bloomberg US 1000 Value Total Return Index, ELCV aims to deliver a higher dividend yield than the total US equity market, as well as long-term capital appreciation, by investing in high-quality, dividend-paying large-cap US companies that align with Eventide’s ethical investment principles.
In seeking to deliver its objective, the ETF will typically invest in sectors traditionally known for offering attractive dividends, such as energy, utilities, and real estate, while being open to opportunities in other industries as well.
Eventide’s investment process includes a bottom-up analysis, evaluating each company for financial strength, dividend sustainability, management quality, and stakeholder value creation. This analysis is complemented by a values-based screening process that aligns with principles of integrity, social responsibility, and environmental stewardship. In particular, the fund screens out companies involved in activities like gambling, alcohol, and weapons production, instead focusing on those with positive societal impacts.
The number of holdings will likely range from approximately 30 to 50. Portfolio construction prioritizes diversification and risk management, with positions monitored for consistency with both financial and ethical criteria.
The top holdings in the ETF currently include Williams Companies (6.6%), Enbridge (5.9%), Pembina Pipeline (5.1%), Southern (4.5%), Public Service Enterprise Group (4.1%), Diamondback Energy (3.4%), ONEOK (3.2%), Trane Technologies (3.1%), and Vistra Energy (3.1%).