4 min readBy Ron Koren ETF Insider
How does the GCIG ETF work?
The GCIG ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
First Trust Advisors L.P., the issuer of DDIV, operates the fund with a strategy focused on replicating the performance of the Index, which comprises the 50 stocks with the highest dividend yield from the Nasdaq US Large Mid CapTM Index while emphasizing relative strength. Developed by Nasdaq, Inc., the Index employs a rules-based approach, utilizing relative strength calculations to assess forward price momentum. Securities demonstrating strong momentum, depicted by Xs in point and figure charting, are considered for inclusion, with emphasis placed on dividend yield for weighting. Quarterly reconstitution ensures alignment with the Index, potentially leading to a higher portfolio turnover rate. As of December 31, 2023, the fund had notable investments in energy and financial sectors, although this allocation may vary over time, exposing the fund to associated risks. This dynamic strategy allows for adaptability to market shifts, potentially broadening the fund's exposure to different sectors and jurisdictions as the Index evolves.
DDIV Dividend, managed by First Trust Advisors L.P., is structured to closely track the performance of the Index, prioritizing stocks with high dividend yields and strong momentum characteristics. Leveraging Nasdaq's rules-based approach, the fund employs relative strength calculations to identify securities demonstrating promising forward price momentum, ensuring a focus on potential dividend growth. With quarterly reconstitution, DDIV Dividend maintains alignment with the Index, allowing for adjustments in holdings to reflect evolving market dynamics. As of December 31, 2023, the fund exhibited significant investments in energy and financial sectors, though this composition may change over time, potentially impacting the fund's exposure to various industries and jurisdictions. DDIV Dividend offers investors a dynamic strategy to capitalize on dividend income while adapting to shifting market conditions.
DDIV Tracking, managed by First Trust Advisors L.P., is meticulously designed to mirror the performance of the Index, which comprises the 50 stocks with the highest dividend yields from the Nasdaq US Large Mid CapTM Index, while emphasizing relative strength. By utilizing a disciplined indexing investment approach, the fund aims to replicate, before fees and expenses, the movements of the Index. Leveraging Nasdaq's proprietary methodologies, DDIV Tracking employs rigorous quantitative inclusion criteria, ensuring the integrity of the Index construction. The Index is periodically reconstituted and rebalanced to maintain its relevance and effectiveness, potentially resulting in a higher portfolio turnover rate for the fund. As of December 31, 2023, significant investments were observed in energy and financial sectors, reflecting the composition of the Index, although this allocation may vary over time. DDIV Tracking offers investors a transparent and systematic strategy to gain exposure to high-dividend-yielding stocks while closely tracking the performance of the Index.
DDIV Correlation, managed by First Trust Advisors L.P., aims to closely correlate with the performance of the Index, which consists of 50 stocks selected based on their high dividend yields and relative strength characteristics. The fund employs a disciplined investment approach to replicate, before fees and expenses, the movements of the Index. Utilizing Nasdaq's robust methodologies, DDIV Correlation emphasizes maintaining a strong correlation with the Index through meticulous portfolio construction and management. As the Index undergoes quarterly reconstitution and rebalancing, the fund adjusts its holdings accordingly to ensure alignment with the Index composition. As of December 31, 2023, significant investments were noted in energy and financial sectors, in line with the Index's sector allocation, although this may evolve over time. DDIV Correlation provides investors with a reliable strategy to gain exposure to high-dividend-yielding stocks while aiming to closely track the performance of the Index.
DDIV Sector, managed by First Trust Advisors L.P., focuses on capitalizing on sector-specific opportunities within the framework of the Index, which comprises the 50 highest dividend-yielding stocks with robust relative strength characteristics. With a strategic emphasis on sector allocation, the fund seeks to optimize exposure to sectors demonstrating favorable dividend prospects and momentum. Utilizing Nasdaq's comprehensive indexing methodologies, DDIV Sector employs a disciplined approach to select and weight securities within each sector, aiming to closely mirror the sector composition of the Index. Quarterly reconstitution ensures alignment with the evolving sector dynamics, potentially leading to adjustments in sector allocations within the fund. As of December 31, 2023, notable investments were observed in energy and financial sectors, though this allocation may vary over time, reflecting changes in sector performance and market conditions. DDIV Sector offers investors a targeted strategy to capitalize on dividend income within specific sectors while leveraging the strengths of the Index methodology.
DDIV Exposure, managed by First Trust Advisors L.P., offers investors a tailored approach to gain exposure to specific sectors and dividend-yielding stocks within the framework of the Index. With a focus on sector allocation and dividend growth potential, the fund strategically selects securities that exhibit strong relative strength characteristics. Leveraging Nasdaq's rigorous indexing methodologies, DDIV Exposure aims to closely replicate the sector composition and performance of the Index. Through disciplined portfolio management, the fund adjusts its holdings periodically to align with changes in sector dynamics, ensuring optimal exposure to sectors with promising dividend prospects. As of December 31, 2023, significant investments were noted in energy and financial sectors, reflecting the fund's exposure to sectors with high dividend yields, though this allocation may evolve over time. DDIV Exposure provides investors with a targeted strategy to capitalize on dividend income while maintaining a diversified exposure across sectors within the parameters of the Index.
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4 min readThe GCIG ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
4 min readIVV, which stands for iShares Core S&P 500 ETF, does pay dividends. IVV is designed to track the performance of the S&P 500 Index, which consists of large-cap U.S. stocks. As a result, IVV distributes dividends to its investors, typically on a quarterly basis, based on the dividends earned from the underlying stocks in the index.
5 min readThe DDIV ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
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