First Trust Plans ‘SMID’ Dividend ETF

First Trust Plans ‘SMID’ Dividend ETF

New small/midcap fund will target stocks exhibiting steady dividend growth.
Reviewed by: Staff
Edited by: Staff

A recent filing from First Trust outlines the firm’s plans to launch a dividend growth ETF targeting the small- and midcap segments of the market. The First Trust SMID Cap Rising Dividend Achievers ETF will track an index from Nasdaq and also list on the Nasdaq exchange.

According to the prospectus, the fund will track an index of 100 small- and midcap securities with a history of raising dividends and a likelihood of continuing to do so in the future.

Among other requirements, eligible companies must be members of the Nasdaq US Benchmark Index, and while they must have at least $500 million in market capitalization, they also cannot be classified as large-cap stocks.

They also must have demonstrated steady dividend growth over the past five years as well as earnings growth and a cash-to-debt ratio of more than 25%. Finally, they must have a trailing 12-month payout ratio of 65% or less, the prospectus said.

The filing did not include a ticker or expense ratio.

Virtus Rebrands BioShares

Today Virtus is rebranding two of the ETFs issued under its exemptive relief. The BioShares Biotechnology Clinical Trials Fund (BBC) and the BioShares Biotechnology Products Fund (BBP) will be renamed the Virtus LifeSci Biotech Clinical Trials ETF and the Virtus LifeSci Biotech Products ETF, respectively.

Both funds also have changed their exchange listings from the Nasdaq to the NYSE Arca, according to a press release.

The two ETFs launched in December 2014, and since then, BBC has gathered nearly $27 million in assets under management, while BBP has $39.4 million.

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