USCF Adds Active Dividend Income ETF
The fund invests in dividend-paying equities and includes ESG criteria in its selection methodology.
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.)
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