Exchange-traded products that are labeled with the “dividend-screened/weighted” attribute within Morningstar’s strategic-beta taxonomy represent the largest contingent of this universe as measured by assets under management in the U.S. As of the end of May, these funds collectively held US$162 billion of investors’ assets. This represents 26% of the US$620 billion in the broader strategic-beta grouping.
This group has been growing at a blistering pace in recent years. During the trailing decade, dividend-oriented ETPs have attracted nearly US$117 billion in new assets.
This should come as little surprise in the context of the prevailing interest-rate regime and the secular upward trend in demand for sources of investment income, as the first waves of baby boomers have entered retirement.
