What is the underlying index that the DOZR ETF aims to track?

The DOZR ETF aims to track the performance of the Northern Trust ESG Vector Scored US Corporate Bond Index. This index is designed to minimize tracking differences relative to the Northern Trust US Corporate Bond Index, while also emphasizing higher ESG scores and reducing aggregate climate-related risks.

What types of companies are included in the DOZR ETF?

The DOZR ETF includes U.S.-dollar-denominated corporate bonds issued by companies that exhibit positive ESG characteristics, as measured by the Northern Trust ESG Vector Score. It seeks to avoid investments in companies involved in certain controversial business activities, such as tobacco production or manufacturing of controversial weapons.

How does the DOZR ETF work?

The DOZR ETF operates by utilizing a passive or indexing approach. It aims to achieve its investment objective by investing in a representative sample of securities that collectively have an investment profile similar to the Northern Trust ESG Vector Scored US Corporate Bond Index. The fund may also hold a portion of its assets in cash and cash equivalents or other securities to help track the index effectively.

What are the advantages of investing in the DOZR ETF?

Investing in the DOZR ETF offers several advantages, including exposure to corporate bonds with strong ESG characteristics, broad-market exposure to investment-grade corporate bonds, and an effort to minimize tracking differences compared to the parent index. Additionally, the fund provides a means for investors to align their portfolios with companies that prioritize sustainability and responsible business practices.

5 min read

By Ron Koren, ETF Insider

What is the DOZR ETF ?

In the world of finance, Exchange-Traded Funds (ETFs) have gained immense popularity as a diversified investment option. Among them is the DOZR ETF, which is designed to track the performance of U.S.-listed securities of companies involved in infrastructure development. In this article, we will delve into the details of the DOZR ETF, its underlying assets, benefits of investing in it, and considerations before making an investment.

DOZR ETF: Overview

The DOZR ETF, also known as the Infrastructure Development and Industrial Transportation ETF, aims to replicate the performance of a specific index. This index is meticulously crafted to encompass companies in the infrastructure sector that engage in construction, engineering, and maintenance services for large-scale projects. Additionally, it includes firms involved in industrial transportation, covering freight and cargo via various means like trucks, trains, ships, and aircraft.

DOZR ETF Underlying and Exposure: What Does It Track and How?

The DOZR ETF's underlying index is curated by Indxx, LLC, the designated Index Provider. It defines infrastructure companies in two distinct categories: Construction & Engineering Services and Industrial Transportation. To be included in the index, companies must derive at least 50% of their total revenue from these activities. The selection process involves applying market capitalization and liquidity metrics to the initial universe of companies. The top 100 securities, based on market capitalization, are chosen for inclusion, and the index is equally weighted. The composition of the index may change over time, leading to changes in the ETF's holdings.

DOZR overlap What is the DOZR ETF ?

DOZR ETF: Benefits of Investing in this ETF

Investing in the DOZR ETF offers several advantages. Firstly, it provides exposure to a diverse range of infrastructure companies, mitigating the risk of investing in individual stocks. Additionally, the ETF's equal-weighted approach ensures that smaller companies have a significant impact on performance, potentially leading to higher returns. Moreover, the infrastructure sector tends to perform well in the long run, making the DOZR ETF an attractive option for investors seeking steady growth.

DOZR ETF: Considerations Before Investing

While the DOZR ETF offers compelling benefits, investors should consider some factors before making their investment decisions. Firstly, like all investments, the value of the ETF may fluctuate, and past performance is not indicative of future results. Investors must assess their risk tolerance and investment objectives before committing capital to the ETF. Moreover, understanding the underlying index and the sector's dynamics is crucial for informed decision-making. As with any investment, it is advisable to conduct thorough research or seek guidance from a qualified financial advisor.

Conclusion:

The DOZR ETF presents a valuable investment opportunity for those looking to diversify their portfolio and gain exposure to the infrastructure and industrial transportation sectors. Its underlying index, carefully crafted to encompass relevant companies, provides a comprehensive representation of these industries. However, as with any investment, thorough analysis and consideration of one's financial goals are essential. Remember, this article is purely for informational purposes and not providing any investment advisory services.

Disclaimer: The information presented in this article is for informational purposes only and does not constitute financial advice or any form of recommendation. Investing in financial instruments carries inherent risks, and investors should conduct their due diligence before making any investment decisions. Always consult with a qualified financial advisor or professional before making investment choices.

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FAQ

What is the DOZR ETF?
The DOZR ETF is an exchange-traded fund that aims to provide investors with exposure to a selection of U.S.-dollar-denominated corporate bonds issued by companies with specific environmental, social, and governance (ESG) characteristics. It also seeks to offer broad-market, core exposure to investment-grade corporate bonds of both U.S. and non-U.S. issuers.
What is the underlying index that the DOZR ETF aims to track?
The DOZR ETF aims to track the performance of the Northern Trust ESG Vector Scored US Corporate Bond Index. This index is designed to minimize tracking differences relative to the Northern Trust US Corporate Bond Index, while also emphasizing higher ESG scores and reducing aggregate climate-related risks.
What types of companies are included in the DOZR ETF?
The DOZR ETF includes U.S.-dollar-denominated corporate bonds issued by companies that exhibit positive ESG characteristics, as measured by the Northern Trust ESG Vector Score. It seeks to avoid investments in companies involved in certain controversial business activities, such as tobacco production or manufacturing of controversial weapons.
How does the DOZR ETF work?
The DOZR ETF operates by utilizing a passive or indexing approach. It aims to achieve its investment objective by investing in a representative sample of securities that collectively have an investment profile similar to the Northern Trust ESG Vector Scored US Corporate Bond Index. The fund may also hold a portion of its assets in cash and cash equivalents or other securities to help track the index effectively.
What are the advantages of investing in the DOZR ETF?
Investing in the DOZR ETF offers several advantages, including exposure to corporate bonds with strong ESG characteristics, broad-market exposure to investment-grade corporate bonds, and an effort to minimize tracking differences compared to the parent index. Additionally, the fund provides a means for investors to align their portfolios with companies that prioritize sustainability and responsible business practices.

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