USCF Adds Active Dividend Income ETF

The fund invests in dividend-paying equities and includes ESG criteria in its selection methodology. 

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Today, USCF rolled out an actively managed ETF targeting companies that pay dividends. The USCF Dividend Income Fund (UDI) will, according to its prospectus, “seek a high level of current income.”  

The fund comes with an expense ratio of 0.65% and lists on the NYSE Arca.  

UDI’s managers will consider things like dividend yield, prospects for dividend growth, balance sheet strength, dividend coverage and low valuations. The fund will also include ESG criteria and screen out companies with significant involvement in the alcohol, tobacco and weapons industries.  

It will further take into account governance and ethics; environmental record; human rights record; and diversity at companies when evaluating them. The portfolio will typically include 30 to 45 companies, the document said. 

At launch, UDI’s portfolio included 33 stocks, with Merck & Co. (2.52%), Abbvie Inc. (2.51%) and Johnson & Johnson (2.39%) among its top holdings. 

  

(Use our stock finder tool to find an ETF’s allocation to a certain stock.) 

 

Contact Heather Bell at [email protected] 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.