On Thursday, Bahl & Gaynor expanded its selection of ETFs with the launch of two new funds. Both of the new Bahl & Gaynor ETFs seek to offer dividend income with a long-term time horizon. Additionally, these funds promote risk mitigation through downside protection.
Large- and Small-Cap Strategies
The first fund, the Bahl & Gaynor Dividend ETF (BGDV), offers a focus on large caps. This fund has a net expense ratio of 0.45%.
As the fund title suggests, the Bahl & Gaynor Small Cap Dividend ETF (SCDV) targets small caps. SCDV’s expense ratio currently sits at 70 basis points.
BGDV and SCDV both primarily focus on investing in dividend-paying equities. These funds use a bottom-up approach to selecting companies for investment.
This approach focuses on a wide variety of individual factors for each stock. These factors include historical performance, competitive advantages, and anticipated future for cash flow and dividend growth.
By focusing on these factors, both SCDV and BGDV hope to curate a portfolio of high-quality companies with competitive dividends. Due to the high-quality focus, both funds aim to offer downside protection from the broader equity market.
Neither BGDV or SCDV prioritize investing in a particular market sector as a core strategy. However, these funds may have more exposure to particular sectors in order to achieve the best results.
SCDV is anticipated to hold stronger exposure to the health care, financials, and industrials sectors. Meanwhile, BGDV may hold more significant exposure in the financials, industrials, and information technology sectors. The sector exposures for each fund may change down the line.
With BGDV and SCDV now coming to market, Bahl & Gaynor now have four ETFs listed in the United States. Despite the small fund library, Bahl & Gaynor’s ETFs are supported by strong fund flows. For example, the Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG ) holds well over $700 million in assets under management.
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