Guggenheim Funds, the money management firm that acquired Claymore Securities and Rydex, today launched a high-dividend ETF that gives investors another option in a crowded field, this one providing access to U.S. companies as well as securities of foreign companies.
The Guggenheim ABC High Dividend ETF (NYSEArca:ABCS), which comes with an annual expense ratio of 0.65 percent, is based on the BNY Mellon ABC Index, according to a June 6 regulatory filing.
The benchmark has about 30 securities, including common stocks and U.S. exchange-listed American depositary receipts of companies from Australia and Brazil and locally listed companies in Australia and Canada, the filing said.
The ETF joins a crowded field of funds competing for investor attention at a time when income-generating investments like dividend-paying stocks are looking relatively attractive. The stock market just made it through its fifth-straight week of losses and the end of the Federal Reserve's quantitative easing could mean existing bond prices will be under pressure should yields start heading higher.
Among the longstanding competing ETFs from major fund sponsors are the $6.32 billion Vanguard Dividend Appreciation ETF (NYSEArca:VIG), the $5.68 billion SPDR Dividend ETF (NYSEArca:SDY) and the $6.11 billion iShares Dow Jones Dividend Index Fund (NYSEArca:DVY). They have dividend yields ranging from just over 2 percent for VIG to around 3.3 percent for SDY and DVY.
The Guggenheim ABC High Dividend ETF's dividend yield wasn't yet posted on Guggenheim's website, as the fund hasn't yet made any distributions.
The new ETF traded today at $24.79 a share, with sellers showing 300 shares at $24.80 and buyers bidding for 300 shares at $24.72, according to data on Yahoo Finance.
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