RevenueShares Plans Payout, EM ETFs

May 29, 2013

The company plans to expand its revenue-weighted ETF franchise into two of the hottest pockets of the fund universe.

RevenueShares, the ETF provider behind a lineup of six revenue-weighted funds, has filed paperwork with regulators to add two equities ETFs to its roster, one focused on emerging markets and the other honing in on dividend stocks, as it looks to get a piece of two of the most vibrant pockets of the investment world.

The filing comes just days after the firm announced it was partnering up with a Chinese private equity group in an effort to ramp up its marketing, sales and offerings lineup here in the U.S., and ultimately in China as well.

RevenueShares, which launched its first ETFs five years ago, today manages just under $600 million in its existing six ETFs, but is committed to ramping up its footprint in the growing ETF market.

By registering funds focused on dividends and the developing world, the firm is signaling it wants to take its brand of fundamentally indexed ETFs to two of the most prospective areas in investing. The low-rate environment has led many ETF sponsors to bring out payout-rich equity funds, just as expected outsized growth in emerging markets has led fund sponsors to target such countries, far and wide.

The planned funds are also revenue-weighted strategies—the approach the firm is known for. Its largest ETF is the RevenueShares Large Cap ETF (NYSEArca: RWL), which has more than $184 million in assets.

The RevenueShares Emerging Market Fund will be a revenue-weighted portfolio of securities that looks to outperform the BNY Mellon Emerging Markets 50 ADR Index, according to the filing. It will have annual expense ratio of 0.49 percent, or $49 per $10,000 invested, which includes a fee waiver.

The RevenueShares Ultra Dividend Fund will comprise equities from 60 companies that have shown the highest average quarterly dividend yields in the previous year, and weights these securities by revenue. The portfolio ultimately seeks to outperform the total return performance of the S&P 900 index. It, too, has net annual fees of 0.49 percent.

Both ETFs cap individual company exposure at 10 percent of the portfolio and rebalance quarterly.


Find your next ETF

Reset All