This strategy is used by major institutional investors on the one hand and private savers on the other, and is particularly attractive when traditional low risk investments provide no – or very low – returns.
Complementing dividends with the “low risk” factor (i.e. low volatility in the share) creates the basis for the index to identify stable, dividend-paying stocks – a strategy that has historically provided stronger returns than a traditionally market value-weighted index.
“It’s very pleasing today to list XACT Nordic High Dividend Low Volatility, and to bring the first Nordic smart beta ETF to the market. With our new ETF we aim to meet the market’s demand for stable, dividend-paying equities with a smart exposure in a smart format – and also at a low cost,” says Pär Nürnberg, Chief Executive of Xact Kapitalförvaltning.
The strategy used by the fund has proved successful historically, particularly during periods of rising interest rates.
“This is the reason why we have chosen to launch this fund as our first smart beta ETF,” says Pär Nürnberg.
First day of trading: 6 April on Nasdaq Stockholm
Legal name: XACT Nordic High Dividend Low Volatility (UCITS ETF) (B1 SEK)
Exchange code: XACTHDIV
Management fee: 0.30 per cent annually
For further information, please contact: Pär Nürnberg, Chief Executive, Xact Kapitalförvaltning AB +46 (0)8 701 3405