A Multi-Factor Approach to Dividend Investing
02 mins 05 secs
In an uncertain market, investors are looking for consistency. In the current environment, it's important to source income in different ways. And one of the basic tenets that we believe in is that consistent income is probably more relevant to clients than just high income sometimes. And with that, we were very focused on developing a portfolio where we could target that consistent income. Columbia Sustainable Global Equity Income ETF Columbia Sustainable International Equity Income ETF Columbia Sustainable U.S. Equity Income ETF The three funds were designed to generate equity income for investors and they do so by focusing on three things: first is dividend yield, the second is the quality of that dividend and its sustainability, and finally, ESG principles. ESG screening adds value Part of what drives that consistency is the quality of the company. And there are financial factors that we look at when trying to figure out what companies would be part of a portfolio, but there are important non-financial factors. And in this case, it was about ESG. we found that ESG plays an important role in the quality of management of a company, and that would contribute to consistent income. A rules-based approach to dividend investing Strategic beta is simply a rule set, it's a passive way of managing assets that is informed by research. Strategic beta offers investors two important attributes. One is the transparency and the consistency of the investment process. The second is the research that's used in creating these portfolios. As an active manager, Columbia Threadneedle has a lot of experience with portfolio construction, and investment insight, and research. And it makes a lot of sense that strategic beta, born between benchmark investing and active investing, make use of that. To learn more, visit columbiathreadneedleETF.com Columbia Sustainable Global Equity Income ETF (ESGW) Columbia Sustainable International Equity Income ETF (ESGN) Columbia Sustainable U.S. Equity Income ETF (ESGS) Carefully consider the fund's investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the fund's prospectus, which may be obtained by calling 888.800.4347 or by visiting the fund's website columbiathreadneedleetf.com to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal. Sustainable U.S. Equity Income Investment Objective Columbia Sustainable U.S. Equity Income ETF (the Fund) seeks investment results that, before fees and expenses, closely correspond to the performance of the Beta Advantage Sustainable U.S. Equity Income 100 Index (the Index). Sustainable Global Equity Income Investment Objective Columbia Sustainable Global Equity Income ETF (the Fund) seeks investment results that, before fees and expenses, closely correspond to the performance of the Beta Advantage Sustainable Global Equity Income 200 Index (the Index). Sustainable International Equity Income Investment Objective Columbia Sustainable International Equity Income ETF (the Fund) seeks investment results that, before fees and expenses, closely correspond to the performance of the Beta Advantage Sustainable International Equity Income 100 Index (the Index). The ETFs in this video are all passively managed. The views expressed are as of March 2017, may change as market or other conditions change and may differ from views expressed by other Columbia Management Investment Advisers, LLC (CMIA) associates or affiliates. Actual investments or investment decisions made by CMIA and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Since economic and market conditions change frequently, there can be no assurance that the trends described here will continue or that any forecasts are accurate. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Investment products are not federally or FDIC-insured, deposits or obligations of or guaranteed by any financial institution and involve risks, including possible loss of principal and fluctuation in value. The Funds are managed by Columbia Management Investment Advisers, LLC (CMIA) and distributed by ALPS Distributors, Inc., which is not affiliated with CMIA. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. ©2017 Columbia Management Investment Advisers, LLC. All rights reserved. 1750017 CET000218 | Expires 5/31/2018Transcript
Consistent income is more relevant to investors than just high income sometimes, argues Marc Zeitoun. So the Columbia Sustainable Income ETFs were designed to target consistent dividend income, using a multi-factor strategic beta approach.
Contact your Columbia Threadneedle Investments representative at 800.426.3750