ETF Watch: Millington Plans High Div Index Fund

September 12, 2016

Millington Securities, a firm that has launched 11 actively managed “Tactical” ETFs, has filed for a new kind of fund. The WBI Power Factor High Dividend Shares (WBIY) will track an index from Solactive and come with an expense ratio of 0.80%.

The fund’s underlying index will select its components from a universe of 3,000 U.S.-listed equities that are expected to have higher-than-average dividend yields. Potential components are scored based on price-to-trailing-12-month diluted earnings from continuing operations, price-to-trailing-12-month free cash flow and price-to-trailing-12-month sales ratio, the prospectus said.

The fund benchmark selects the 100-highest-scoring securities and weights them based on indicated dividend yield.

WBIY represents a new direction for the WBI ETF family: Not only is the fund actively managed, it is focused solely on U.S. equities. The firm’s other ETFs fall into the global equity and asset allocation categories. The largest is the WBI Tactical Income Shares (WBII), which launched in 2014 and has $367 million in assets under management.

The filing did not include a listing exchange.

Contact Heather Bell at [email protected].

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