Alternative Investments/ESG: USCF Launches A Dividend Income Fund With ESG Focus
USCF partnered with Miller/Howard Investments, Inc., a Woodstock, NY based, research-driven asset manager for this ETF.
USCF launched Wednesday the USCF Dividend Income Fund, an actively-managed exchange traded fund (ETF) that invests in U.S. exchange-traded dividend-paying and dividend-growth companies meeting the Fund’s environmental, social and governance (ESG) criteria. (ETF Strategy)
Listing on the NYSEARCA, the ETF has an expense ratio of 0.65%. It seeks a high level of current income and growth of income as a secondary objective.
The fund seeks out mature companies – eligible constituents must have market capitalizations above $4 billion and average daily trading volumes greater than $30 million – which have historically generated attractive returns and are considered likely to continue growing their dividends.
Miller/Howard, which is sub-advising the ETF, utilizes a bottom-up fundamental research process to select companies based on dividend yield, prospects for dividend growth, balance sheet strength, dividend coverage, and valuation.
The ETF will invest in only about 30 to 45 companies that represent Miller/Howard’s highest conviction ideas.
“We see a company’s ability to pay and grow the dividend as a marker of financial strength and stability,” said Luan Jenifer, CEO of Miller/Howard Investments. “In addition, our ESG research helps us to understand and avoid risks that the financials alone might not uncover.”
“As an asset manager who specializes in commodities and alternative investments, USCF is focused on offering unique investment opportunities,” said John Love, President and CEO of USCF. “UDI offers the potential for what Miller/Howard calls “unfixed income” by participating in a growing income stream, which can serve as an alternative hedge against inflation. Traditional fixed income securities cannot provide this inflation hedge due to the fixed nature of their payments.”
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