Guinness Atkinson, the California asset manager who filed for
exemptive relief less than a month ago, has now filed regulatory
paperwork proposing to bring a dividend ETF to market in an effort
to chip off its share of investors' hunger for the high-payout
rewards of dividend funds.
The Guinness Atkinson Dividend Shares ETF will invest in
U.S. as well as foreign dividend-paying companies that meet certain
requirements on cash flow, dividend-payment history and
capitalization, but it's still unclear which index the strategy
The idea is certainly timely, as investors continue to pour
assets into dividend-focused
, as they offer an income alternative to the paltry yields seen on
risk-free government bonds these days.
Just last week, S&P noted that more and more companies are
paying out dividends, saying that 81 percent of S&P 500 names
served up payouts in the first quarter of the year, the highest
rate since 1999. That pace puts U.S. stock dividend payments on
track to reach a record high of $300 billion this year.
Dividend-focused ETFs abound, so it remains to be seen just how
effective Guinness Atkinson will be at carving a niche in a
well-populated segment anchored by the likes of the $5.4 billion
Vanguard High Dividend Yield ETF (NYSEArca:VYM) and the $2.8
billion iShares High Dividend Equity Index Fund (NYSEArca:HDV), to
name a few.
The prospectus offers little insight into the proposed fund, but
does state that it will follow a replication strategy, seeking to
produce, as closely as possible, the holdings of the index it
Guinness Atkinson has yet to tag a ticker or price tag onto the
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