DIVA ISSUER
The issuer of the DIVA ETF, known as the Quadratic Interest Rate Volatility and Inflation Hedge ETF, is Quadratic Capital Management LLC. Founded by Nancy Davis, Quadratic Capital Management is an investment management firm specializing in options-based strategies. The DIVA ETF seeks to provide investors with a hedge against interest rate volatility and inflation by employing a long/short strategy on interest rate volatility swaps and Treasury Inflation-Protected Securities (TIPS). With its innovative approach, Quadratic Capital Management aims to help investors navigate changing market conditions and protect their portfolios from the impact of interest rate fluctuations and inflationary pressures.
DIVA DIVIDEND
While the primary focus of the DIVA Dividend ETF may not revolve around dividend income, it mirrors the dividend distribution of the underlying index. Eligible stocks for inclusion in the index must meet specific size and liquidity criteria, ensuring that the components are relatively stable and liquid. Dividend distributions typically occur on a quarterly basis, influenced by the dividend policies and performances of the constituent companies. Given its focus on a diversified selection of stocks, investors in DIVA Dividend can potentially benefit from both capital appreciation and modest dividend returns.
DIVA TRACKING
The Amplify YieldShares CWP Dividend & Option Income ETF, with the ticker symbol DIVA, is designed to track the performance of the Indxx Hedged Dividend Inc ome Index, also known as the Target Hedged Dividend Index. This index follows a long/short strategy with long positions having approximately twice the weight as the short positions. DIVA aims to generate positive returns by capitalizing on the differences in total return between its long and short positions. To achieve its objective, DIVA invests at least 80% of its net assets in common stocks of the long positions in the Target Hedged Dividend Index while simultaneously selling short at least 80% of the short positions in the same index. The fund primarily focuses on high dividend income generation with a secondary goal of capital appreciation while attempting to limit drawdowns during market downturns. The Target Hedged Dividend Index selects its components from the largest 1000 U.S. listed issuers, including REITs, MLPs, and BDCs, based on their dividend history and yield. Approximately 100 securities with the highest dividends and yields are selected as long components, while 150 to 200 securities with inconsistent or low dividends become short components, all being equal-weighted. While DIVA aims to replicate the Target Hedged Dividend Index, it may use a sampling strategy when necessary to achieve correlation. This allows for flexibility in its portfolio construction, which may lead to slight deviations from the index's weightings. Additionally, DIVA has the flexibility to allocate up to 20% of its assets in instruments beyond the Target Hedged Dividend Index, such as derivatives, futures contracts, and other common stocks, to enhance tracking efficiency. The Target Hedged Dividend Index undergoes quarterly reconstitution and rebalancing, with sector weightings subject to specific caps. Investors seeking income with a focus on dividend strategies and capital protection may consider DIVA as it strives to align with the performance of the Target Hedged Dividend Index.
DIVA CORRELATION
The correlation aspect of the AGFiQ Dynamic Dividend ETF (DIVA) is essential for investors looking to understand its performance dynamics. DIVA tracks the Indxx Hedged Dividend Income Index, a long/short index where long positions carry approximately twice the weight of short positions. This index aims to provide high dividend income with a secondary goal of capital appreciation and downside protection during market downturns. As such, DIVA's correlation with various market segments and assets can be pivotal for investors seeking to hedge, diversify, or manage risk within their portfolios. If you want to delve deeper into DIVA's correlations and gain valuable insights into its behavior relative to other US ETFs and assets, our tool ETF Insider offers a web app with simple visualization tools. This resource will help you analyze correlations and overlaps, making it easier to make informed investment decisions based on DIVA's unique characteristics within the market.
DIVA SECTOR
The AGFiQ Dynamic Dividend ETF (DIVA) primarily focuses on the equity market, seeking to track the performance of the Indxx Hedged Dividend Income Index. This index employs a long/short strategy, with a heavier allocation to long positions compared to short positions. The ETF aims to provide investors with a source of high dividend income while also targeting capital appreciation and risk mitigation, making it an option for those looking for income and downside protection in their portfolio.
DIVA EXPOSURE
The exposure characteristic of the DIVA ETF is centered around the Indxx Hedged Dividend Income Index, which it seeks to track. This index is unique in that it employs a long/short strategy, with long positions carrying approximately twice the weight as short positions. The ETF's performance is determined by the difference in total return between its long and short positions. DIVA is designed to provide high dividend income with a secondary objective of capital appreciation while limiting drawdowns in falling equity markets. It focuses on the largest 1000 U.S. listed issuers, including REITs, MLPs, and BDCs, aiming to identify securities with the highest dividend yields as long components and those with lower yields as short components. The Fund may use a sampling strategy to track the index and may invest up to 20% of its assets in instruments other than those in the Target Hedged Dividend Index, including derivatives and futures contracts. Additionally, the Fund is subject to sector concentration limits, mirroring the index's sector weightings.
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