On Oct. 2, RevenueShares launched the RevenueShares Ultra Dividend Fund (RDIV) in an attempt to offer a new income-rich option in an environment of persistent low-interest rates.
RDIV is based on the RevenueShares Ultra Dividend Index, a dividend- and revenue-weighted index that’s based on and seeks to outperform the S&P 900. It comprises 60 securities with the highest average quarterly dividend yields over the past 12 months, which are then reweighted according to the company’s revenues, the fund’s prospectus said.
The index is rebalanced and reconstituted quarterly according to revenue weightings as of the previous quarter.
The fund joins a roster of at least 30 other U.S. dividend-focused funds, all of which take a different aim at the segment of dividend-paying stocks to find sources of income for investors currently grappling with paltry yields in much of the traditional fixed-income space. RDIV costs 49 basis points.