Risk Profile: Moderate Growth and Income
The CMG High and Growing Dividends ETF Strategy selects ETFs that either currently pays a high dividend and/or have processes that invest in stocks with a history of growing their dividends. A simple moving average rule is utilized as a stop-loss risk management process to mitigate downside risk and during periods of broad-based negative price trends, the strategy may invest 100% in cash.
How it works
This portfolio utilizes ETFs that allocate to both U.S. and non-U.S. companies. Due to the emphasis on dividends, this portfolio produces returns that are generally less volatile than the broad equity market and seeks higher returns over a full market cycle.
Higher current yields coupled with higher dividend growth allow the portfolio to be less dependent on appreciation while generating income. During periods of low growth, this portfolio has the potential to outperform broad equity markets.
Investment Objective: Income & Capital Appreciation
Suggested Portfolio Positioning: Serves as a complement to a client’s equity allocation
Suggested Allocation: Typically representing 10 – 25% of a client’s total portfolio
Benchmark: Russell 1000 Value TR
Morningstar Peer Group: US Large Value
*No inverse or leveraged ETFs are used.
Past performance does not guarantee or indicate future results.
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