Today, Eventide Asset Management made its ETF debut with the launch of the Eventide High Dividend ETF (ELCV ).
ELCV is an actively managed fund with a net expense ratio of 0.49%. The Eventide fund aims to offer investors income, growth of income, and long-term capital appreciation.
To fulfill its investment goals, ELCV invests primarily in dividend-paying securities. By doing so, the fund hopes to generate yield that is stronger than the average dividend yield of the Bloomberg US 3000 Total Return Index’s equity securities.
Long-Term Focus
When it comes to managing ELCV’s portfolio, the Eventide portfolio managers employ a long-only investment strategy. With a long-term lens, the fund seeks companies that can provide growing income, along with capital appreciation.
Regarding sector exposure, ELCV primarily invests in securities tied to the energy or utilities-related industries. However, the ETF may invest in any sector that offers good dividends and shareholder yields
While ELCV invests mostly in companies based in the United States, the fund may also invest in foreign companies. These foreign investments may be done so through either direct investments or American depository receipts (ADRs).
In terms of cap size, ELCV mostly invests in large-cap companies. Along with common stocks, the fund may also invest in REITs, energy infrastructure companies, and exchange-listed preferred securities.
To choose stocks to include in the portfolio, Eventide mixes fundamental research with value-based factors. The issuer’s fundamental analysis includes an examination of financial resilience, assessment of management, industry analysis, and measurement of stakeholder value, among other factors.
Along with the fundamental research process, Eventide uses a proprietary values-focused screening strategy to evaluate potential assets. In doing so, the firm seeks to select companies that align with faith-inspired values.
During ELCV’s rigorous portfolio construction process, Eventide seeks to keep risk management, diversification, and macro views in consideration. Investments and sector allocations within the fund will continue to be monitored to ensure the ETF’s portfolio aligns with its investment fundamentals and value-based criteria.
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