iM Global Partner has launched a new dividend growth ETF on the New York Stock Exchange with Berkshire Asset Management. The iMGP Berkshire Dividend Growth Equity ETF (BDVG ) is an active, fully transparent ETF that targets dividend-paying equities.
BDVG emphasizes stocks with a strong track record of paying dividends or expected to increase their dividends over time. The fund’s investment universe is predominantly U.S. large-cap stocks.
Berkshire will subadvise the fund using the same dividend growth strategy it’s managed in a separate account for 14 years. BDVG is a clone of Berkshire’s separate account. Both are managed by the same team, and both use the same investment process and philosophy.
A Very Rigorous Approach
Berkshire’s investment philosophy centers around buying high-quality, undervalued companies and holding them for a long period of time. Its team evaluates not just the current dividend but also considers the company’s overall quality and future prospects. The firm believes that a company’s dividend yield and history of growing dividends are a byproduct of strong business fundamentals.
“We don’t simply rely on historical dividend screens,” said Gerard Mihalick, portfolio manager and partner at BAM. “We have a very rigorous approach that evaluates a company’s value and potential for future dividend growth.”
Mihalick added: “We conduct our analysis as if we were going to acquire the entire company. This is what we believe gives us an edge over other strategies and believe it’s a commonsense approach to investing.”
Jeff Seeley, Deputy CEO, CEO iM Global Partner Fund Management, said iMPG launched BDVG to accommodate growing client demand. Per Seeley, “an increasing number” of advisors have asked “to access” Berkshire’s dividend growth equity strategy “in an ETF format.”
BDVG carries an expense ratio of 0.55%.
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