- RDIV is a 4.8% yielding smart-beta fund mindful of the sales factor.
- The index rebalancing happens four times a year, with dividend suspension or yield compression being the key reasons for the removal of constituents.
- Though RDIV is a passively managed investment vehicle that simply tracks the index, its turnover of 98% is fairly elevated.
- The best-in-class dividend yield of 4.8% (remember that the standardized yield is around 3.5%), permanent value tilt, relatively high quality of the holdings, and the overall strategy mindful of revenues are something that I like, but that is not persuading me to immediately upgrade it to Buy.
For further details see:
RDIV: High Yield Strategy Marred By High Turnover