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.
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.