Pacific Global debuts with actively managed US equity income ETF

Feb 13th, 2019 | By | Category: Equities

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Newcomer Pacific Global Asset Management has launched the Pacific Global US Equity Income ETF (USDY US) on NYSE Arca.

Pacific Global debuts with actively managed US equity income ETF

The fund invests in US companies with robust financial strength and stable or improving dividends.

Sub-advised by affiliate Cadence Capital Management, the actively managed ETF invests in US companies with above average or improving dividends.

According to the fund’s prospectus, the ETF will favour those firms that demonstrate financial strength through strong balance sheets, predictable earnings and cash flow growth, and a history of dividend growth.

It invests primarily in large-cap securities (those with over $50 billion in market capitalization) including REITs. Constituents will approximately be weighted by market cap.

The fund, which is benchmarked against the Russell 1000 Value Index, offers a diversified portfolio with 366 current holdings, the largest of which is Boeing with a weight of just 1.5%.

“We see an exciting opportunity to help clients address their income and growth needs through the simplicity and transparency of exchange-traded funds,” said Anthony J. Dufault, Head of ETF Product Development at Pacific Global Asset Management. “To accomplish this, we balance the 150-year-old investment expertise of our parent company, Pacific Life, with a modern and agile approach to building client investment solutions that stand the test of time.

“USDY offers investors value and access to an experienced portfolio management team, making it an ideal complement to a passively managed dividend strategy.”

The fund comes with an expense ratio of 0.29%.

There are several ETFs offering passive exposure to US equities with a focus on dividend growth. The largest of these is the $6.0bn iShares Core Dividend Growth ETF (DGRO US), which tracks the Morningstar US Dividend Growth Index. The fund comes with an expense ratio of just 0.08%.

Pacific Global has stated its intention to launch further ETFs, including both equity and fixed income funds, later in the year.

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