ProShares, a premier provider of alternative ETFs, today launched the
ProShares MSCI EAFE Dividend Growers ETF (EFAD), the first ETF that
invests in the companies in the MSCI EAFE Index with the best track
record of consistent year-over-year dividend growth. EFAD, which is
listed on NYSE Arca, tracks the MSCI EAFE Dividend Masters Index.
“Dividend growth can be an indicator of a company’s financial strength
and return potential. In fact, companies in the EAFE index that grew
dividends historically produced better returns with lower volatility
than the EAFE itself,” 1 said Michael L. Sapir, Chairman and
CEO of ProShare Advisors, LLC. “We are pleased to offer an ETF that
isolates the companies with the longest track record of dividend growth
in the EAFE, the most popular international developed markets index.” 2
Investors have already demonstrated strong interest in a similar
dividend growth strategy for the most popular U.S. equity index, the S&P
500®.2 ProShares S&P 500®
Aristocrats ETF (NOBL) is the only ETF that isolates the S&P 500
companies with the best track record of consistent year-over-year
dividend growth. It has gathered more than $230 million in assets since
its October 2013 launch.
About the Index
“The MSCI Dividend Masters Indexes are yet another example of our
ability to deliver innovative products to meet the increasingly
sophisticated needs of our clients. We look forward to continuing to
work with ProShares as they expand their Dividend Growers ETF offering,”
said Diana Tidd, Managing Director and Head of the MSCI Index Business
in the Americas.
The MSCI EAFE Dividend Masters Index holds MSCI EAFE companies that have
grown their dividends for at least 10 consecutive years. The index is
equally weighted and contains a minimum of 40 stocks. No single sector
may represent more than 30% of the index and no single country may
represent more than 50%. The index is rebalanced each February, May,
August and November, with annual reconstitution during the November
rebalance.
About ProShares
ProShares offers the nation’s largest lineup of alternative ETFs. We
help investors to go beyond the limitations of conventional investing
and face today’s market challenges. ProShares helps investors build
better portfolios by providing access to alternative investments
delivered with the liquidity, transparency and cost effectiveness of
ETFs. Our lineup of over 145 alternative ETFs can help you reduce
volatility, manage risk and enhance returns.
1 Source: ProShares and Ned Davis Research, based on an
analysis of MSCI EAFE Index stocks from 6/30/1996 through 6/30/2014.
During the period, companies within the MSCI EAFE that grew dividends
returned 11.0% compared with 5.7% for the MSCI EAFE itself, and did so
with lower volatility—18.8% compared with 20.0%. Index performance
returns do not reflect any management fees, transaction costs or
expenses. Indexes are unmanaged and one cannot invest in an index. Past
performance is no guarantee of future results.
2 Based on ETF assets tracking each index. Source:
Morningstar.
It is possible that the requirement to have 10 consecutive years of
dividend growth could be reduced in the future. If there are fewer than
40 stocks with at least 10 consecutive years of dividend growth, or if
sector or country caps are breached, the index will include companies
with shorter dividend growth histories.
ProShares has the largest lineup of alternative ETFs in the United
States according to Strategic Insight (“SI”), based on an analysis of
all the known alternative ETF providers (as defined by SI) by their
number of funds and assets (as of 1/31/2014).
Investing involves risk, including the possible loss of principal.
This ProShares ETF is diversified and entails certain risks, including
imperfect benchmark correlation and market price variance, that may
decrease performance. International investments may involve risks from
geographic concentration, differences in valuation and valuation times,
unfavorable fluctuations in currency, differences in generally accepted
accounting principles, and from economic or political instability.
Please see summary and full prospectuses for a more complete description
of risks. There is no guarantee any ProShares ETF will achieve its
investment objective.
Carefully consider the investment objectives, risks, charges and
expenses of ProShares before investing. This and other information can
be found in their summary and full prospectuses. Read them carefully
before investing. Obtain them from your financial advisor or
broker/dealer representative or visit ProShares.com.
"MSCI," "MSCI Inc.," "MSCI Index" and "EAFE" are service marks of MSCI
and have been licensed for use by ProShares. ProShares have not been
passed on by MSCI or its affiliates as to their legality or suitability.
ProShares based on MSCI indexes are not sponsored, endorsed, sold or
promoted by MSCI or its affiliates, and they make no representation
regarding the advisability of investing in ProShares. THIS ENTITY AND
ITS AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO
PROSHARES.
ProShares are distributed by SEI Investments Distribution Co., which is
not affiliated with the fund’s advisor.
Copyright Business Wire 2014