Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 11/08/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
27.6%
1 yr return
40.1%
3 Yr Avg Return
8.8%
5 Yr Avg Return
16.3%
Net Assets
$43.5 M
Holdings in Top 10
41.8%
Expense Ratio 0.49%
Front Load N/A
Deferred Load N/A
Turnover N/A
Redemption Fee N/A
Standard (Taxable)
N/A
IRA
N/A
Fund Type
Exchange Traded Fund
Name
As of 11/08/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
The Fund will, under normal circumstances, invest at least 80% of its total assets, plus borrowings for investment purposes (the “80% basket”) in component securities of the Underlying Index (“Component Securities”).
The Fund may invest the remaining 20% of its total assets (the “20% basket”) in securities and instruments not included in the Underlying Index, but which Impact Shares Corp (the “Sub-Adviser”) believes will help the Fund track the Underlying Index. For example, the Fund may invest in securities that are not components of the Underlying Index to reflect various corporate actions (such as mergers) and other changes in the Underlying Index (such as reconstitutions, additions and deletions). The Fund may invest in securities of any type and of companies of any market capitalization (including small- and mid-capitalization companies), market sector or industry, but expects to invest primarily in equity securities of U.S. companies. The Fund may use the 20% basket to invest in securities issued by other investment companies, including other exchange-traded funds. In addition, the Fund’s 20% basket may be invested in cash and cash equivalents, including shares of money market funds advised by the Adviser, the Sub-Adviser, or their affiliates.
Unlike many investment companies, the Fund does not try to “beat” the index it tracks. The Fund uses a passive management strategy designed to track the total return performance of the Underlying Index.
The Adviser or the Sub-Adviser may employ a representative sampling indexing strategy for managing the Fund, which entails investing in a sample of securities that together have an investment profile mirroring the Underlying Index. However, the Fund will only use representative sampling in a manner consistent with its 80% policy. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability, leverage and price to earnings ratios) and liquidity measures similar to those of the Underlying Index. The Fund may or may not hold all of the securities in the Underlying Index. “Tracking error” is the difference between the performance (return) of the Fund’s portfolio and that of the Underlying Index. The Adviser or the Sub-Adviser expects that, over time, the Fund’s tracking error will not exceed 5%. Funds that employ a representative sampling strategy may incur tracking error risk to a greater extent than funds that seek to replicate an index.
The Fund concentrates its investments in a particular industry or group of industries to approximately the same extent as the Underlying Index is so concentrated.
The Underlying Index is designed to measure the performance of large and mid- capitalization companies that are “empowering to minorities,” and to exhibit risk and return characteristics similar to those of the Morningstar US Large-Mid Cap® Index, as described below.
The Underlying Index is constructed using a rules-based methodology to select companies from the Morningstar US Large-Mid Cap® Index (the “Parent Index”), a free float market-cap weighted index that constitutes 90% of the total market capitalization of the U.S. market) that have strong minority empowerment practices. Morningstar constructs the Underlying Index using company level indicators, scores, and indicator relevance weighting from Sustainalytics, the Fund’s ESG research provider, that include certain social criteria identified and compiled by the NAACP (“NAACP” or the “Partner Nonprofit”) to measure the strength of minority empowerment practices and products or services for each company within the Parent Index (a company’s “Minority Empowerment Composite Score”). Based on that scoring, after excluding those companies that Sustainalytics determines (i) derive more than 5% of their revenues from predatory lending activities, (ii) derive more than 5% of their revenues from the production of tobacco products, (iii) are involved in the production of riot control weapons, (iv) operate correctional facilities or provide security services, (v) are primarily involved in the production of oil, gas or coal, (vi) are not compliant with the principles of the UN Global Compact1, or (vii) have a detrimental score for applicable controversies, the 200 best scoring companies (after applying the optimized weighting methodology discussed below) are selected by Morningstar as the final underlying index components. The Underlying Index is constructed by Morningstar using an optimized weighting methodology. Under this methodology, Morningstar uses a quantitative process that is designed to determine optimal weights for securities to maximize exposure of companies with higher rankings as to minority empowerment practices, while maintaining an Underlying Index that exhibits risk and return characteristics similar to those of the Parent Index. The Index Provider determines the weighting of each security in the Underlying Index using the following variables: Minority Empowerment Composite Score, market capitalization, maximum and minimum weightings by security and sector. Underlying Index constituents are subject to a maximum 5% per company weighting.
The Underlying Index is expected to contain approximately 200 securities, but this number may change. If a company in the Underlying Index has acted in a manner inconsistent with the selection criteria of the Underlying Index, Morningstar may, in its discretion, after consulting with Sustainalytics, exclude the company from the Underlying Index between reconstitution periods. Morningstar may also make adjustments in accordance with its internal guidelines to reflect extraordinary corporate events (e.g., mergers and acquisitions, spin-offs, bankruptcies, insolvencies, and liquidations). The Underlying Index is rebalanced quarterly and reconstituted utilizing the rules-based methodology described above annually. Rebalancing refers to the process of adjusting the weights of the constituent securities in the Underlying Index in accordance with its optimized weighting methodology in response to changes in stock value and market capitalization. Reconstitution refers to the process of changing the constituent securities in the Underlying Index so that securities that no longer meet the criteria for the Underlying Index are excluded and new securities that do meet those criteria are included.
The composition of the Underlying Index is based on the following social screens used in determining the Minority Empowerment Composite Score that narrows the Index Universe. Each of the social screens for the Minority Fund addresses an issue that has a history of NAACP support.
1. Board Diversity This indicator provides an assessment of the diversity of a company’s board of directors. Diversity of background can provide fresh perspectives in the boardroom and lead to better board decision-making.
2. Discrimination Policy This indicator provides an assessment of the quality of a company’s policy to eliminate discrimination, including racial discrimination, and ensure equal opportunity.
3. Scope of Supplier Social Standards This indicator provides a general assessment of whether a company has supply chain/contractor social policies and the scope of its social standards, including items such as nondiscrimination policies.
4. Freedom of Association Policy This indicator provides an assessment of the quality of a company’s freedom of association and collective bargaining policy, including its impact on racial minorities.
1 | The UN Global Compact is an arrangement by which companies voluntarily and publicly commit to a set of principles, known as the Ten Principles of the UN Global Compact, all of which are drawn from key UN Conventions and Declarations, in four areas: (i) human rights; (ii) labor; (iii) environment; and (iv) anti-corruption. |
5. Diversity Programs This indicator assesses the strength of a company’s initiatives to increase the diversity of its workforce, including racial diversity.
6. Community Development Programs This indicator assesses the strength of a company’s local community development programs. It does not focus on cash donations, but formal programs that promote long-term economic development among communities, including minority communities, directly affected by the company’s operations.
7. Minority-Inclusive Health and Safety Management System This indicator assesses the strength of the company’s initiatives to manage employee health and safety and prevent accidents and occupational illnesses.
8. Conflict Minerals Programs This indicator measures the strength of a company’s initiatives to eliminate conflict minerals from its products and its supply chain. The term conflict minerals refers to tantalum (coltan), tin (cassiterite), tungsten (wolframite), and gold (together, they are commonly referred to as the 3TG), which have originated in conflict-affected or high-risk regions and may be used to financially support the conflict or human rights abuses.
9. Media Ethics Programs This indicator assesses the strength of a company’s initiatives to ensure good governance, ethics, and integrity throughout its content creation to ensure impartiality, transparency, objectivity, fairness, age-appropriateness, independence, plurality, and inclusiveness (diversity of content, topics, and viewpoints).
10. Human Rights Programs This indicator assesses the strength of the company’s initiatives to comply with its obligation to respect human rights.
11. Editorial Guidelines This indicator provides an assessment of the company’s commitment to address media ethics as it relates to the dissemination of content. This includes the company’s stated values related to the impact of content on protected classes and minorities.
12. Advertising Ethics This indicator provides an assessment of the presence and strengths of a company policy on advertising ethics.
13. Human Capital Development This indicator assesses the strength of a company’s initiatives to recruit, retain, and develop human capital to avoid a shortage of skilled labor.
14. Responsible Product Offering This indicator assesses the strength of a financial institution’s initiatives to market products and services responsibly, so as to avoid predatory lending and minimize risks to the customers of such financial institution.
15. Responsible Marketing Policy This indicator provides an assessment of the quality of a company’s responsible marketing policy.
16. Human Rights Policy This indicator provides an assessment of the strength of the company’s commitment to respect human rights within its sphere of influence.
17. Gender Pay Equality Programs This indicator assesses the strength of programs a company has implemented to ensure gender pay equality. This includes initiatives to identify, measure, and close the gender pay gap.
18. Gender Pay Disclosure This indicator assesses the strength of a company’s disclosure related to the gender pay gap.
Period | NACP Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 27.6% | 3.6% | 45.1% | 17.06% |
1 Yr | 40.1% | 6.6% | 65.8% | 18.62% |
3 Yr | 8.8%* | -5.9% | 16.1% | 46.85% |
5 Yr | 16.3%* | -0.8% | 110.8% | 11.00% |
10 Yr | N/A* | 2.9% | 52.7% | 82.30% |
* Annualized
Period | NACP Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 27.9% | -42.6% | 47.4% | 4.16% |
2022 | -25.6% | -56.3% | -4.2% | 79.33% |
2021 | 23.7% | -27.2% | 537.8% | 20.67% |
2020 | 23.9% | -22.5% | 2181.7% | 2.94% |
2019 | 29.0% | -13.5% | 40.4% | 12.43% |
Period | NACP Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 27.6% | 3.6% | 45.1% | 17.06% |
1 Yr | 40.1% | 6.6% | 65.8% | 18.62% |
3 Yr | 8.8%* | -5.9% | 16.1% | 46.85% |
5 Yr | 16.3%* | -0.8% | 110.8% | 11.00% |
10 Yr | N/A* | 2.9% | 52.7% | N/A |
* Annualized
Period | NACP Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 29.7% | -5.0% | 47.4% | 7.42% |
2022 | -23.0% | -36.8% | -2.2% | 94.26% |
2021 | 27.6% | 3.0% | 537.8% | 39.00% |
2020 | 25.9% | -15.8% | 2266.0% | 3.63% |
2019 | 30.4% | -0.4% | 241.3% | 46.37% |
NACP | Category Low | Category High | NACP % Rank | |
---|---|---|---|---|
Net Assets | 43.5 M | 2.34 M | 1.55 T | 94.07% |
Number of Holdings | 164 | 2 | 3963 | 39.16% |
Net Assets in Top 10 | 19.8 M | 1.07 M | 517 B | 93.91% |
Weighting of Top 10 | 41.77% | 0.3% | 112.9% | 25.29% |
Weighting | Return Low | Return High | NACP % Rank | |
---|---|---|---|---|
Stocks | 99.54% | 0.00% | 105.85% | 30.54% |
Cash | 0.46% | 0.00% | 99.07% | 65.88% |
Preferred Stocks | 0.00% | 0.00% | 2.53% | 94.39% |
Other | 0.00% | -13.91% | 100.00% | 89.20% |
Convertible Bonds | 0.00% | 0.00% | 5.54% | 94.21% |
Bonds | 0.00% | 0.00% | 94.06% | 94.23% |
Weighting | Return Low | Return High | NACP % Rank | |
---|---|---|---|---|
Technology | 26.75% | 0.00% | 48.94% | 14.56% |
Healthcare | 14.75% | 0.00% | 52.29% | 40.69% |
Consumer Cyclical | 11.70% | 0.00% | 30.33% | 26.22% |
Financial Services | 11.29% | 0.00% | 55.59% | 87.01% |
Communication Services | 10.20% | 0.00% | 27.94% | 16.71% |
Industrials | 6.90% | 0.00% | 29.90% | 90.57% |
Energy | 5.79% | 0.00% | 41.64% | 16.05% |
Consumer Defense | 4.79% | 0.00% | 47.71% | 86.44% |
Utilities | 4.30% | 0.00% | 20.91% | 11.99% |
Basic Materials | 1.86% | 0.00% | 25.70% | 79.49% |
Real Estate | 1.67% | 0.00% | 31.91% | 74.19% |
Weighting | Return Low | Return High | NACP % Rank | |
---|---|---|---|---|
US | 99.54% | 0.00% | 105.85% | 25.67% |
Non US | 0.00% | 0.00% | 64.54% | 94.39% |
NACP Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 0.49% | 0.01% | 19.75% | 74.73% |
Management Fee | 0.49% | 0.00% | 1.90% | 45.96% |
12b-1 Fee | 0.00% | 0.00% | 1.00% | 20.33% |
Administrative Fee | N/A | 0.00% | 0.85% | N/A |
NACP Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 1.00% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 5.00% | N/A |
NACP Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 0.25% | 2.00% | N/A |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
NACP Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | N/A | 0.00% | 268.00% | 46.58% |
NACP | Category Low | Category High | NACP % Rank | |
---|---|---|---|---|
Dividend Yield | 1.05% | 0.00% | 25.47% | 56.35% |
NACP | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Quarterly | Annual | Quarterly | Annual |
NACP | Category Low | Category High | NACP % Rank | |
---|---|---|---|---|
Net Income Ratio | 1.03% | -54.00% | 2.44% | 31.70% |
NACP | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Semi-Annually | Annually |
Date | Amount | Type |
---|---|---|
Sep 26, 2024 | $0.113 | OrdinaryDividend |
Jun 28, 2024 | $0.100 | OrdinaryDividend |
Mar 26, 2024 | $0.111 | OrdinaryDividend |
Dec 26, 2023 | $0.108 | OrdinaryDividend |
Sep 26, 2023 | $0.121 | OrdinaryDividend |
Jun 27, 2023 | $0.100 | OrdinaryDividend |
Mar 28, 2023 | $0.107 | OrdinaryDividend |
Dec 27, 2022 | $0.658 | OrdinaryDividend |
Sep 27, 2022 | $0.095 | OrdinaryDividend |
Jun 27, 2022 | $0.088 | OrdinaryDividend |
Mar 28, 2022 | $0.083 | OrdinaryDividend |
Dec 28, 2021 | $0.882 | OrdinaryDividend |
Sep 27, 2021 | $0.070 | OrdinaryDividend |
Jun 25, 2021 | $0.068 | OrdinaryDividend |
Mar 26, 2021 | $0.074 | OrdinaryDividend |
Dec 28, 2020 | $0.261 | OrdinaryDividend |
Sep 25, 2020 | $0.059 | OrdinaryDividend |
Jun 25, 2020 | $0.045 | OrdinaryDividend |
Mar 26, 2020 | $0.063 | OrdinaryDividend |
Sep 25, 2019 | $0.072 | OrdinaryDividend |
Jun 24, 2019 | $0.072 | OrdinaryDividend |
Mar 25, 2019 | $0.076 | OrdinaryDividend |
Dec 24, 2018 | $0.080 | OrdinaryDividend |
Dec 24, 2018 | $0.008 | CapitalGainShortTerm |
Sep 25, 2018 | $0.049 | OrdinaryDividend |
Start Date
Tenure
Tenure Rank
Jul 12, 2018
3.89
3.9%
Mr. Powell, has spent over two decades in financial services, primarily in hedge funds and private equity. Most recently Ethan founded Impact Shares which is a single issue ESG ETF issuer. Mr. Powell is the Chief Product Strategist, Executive Vice President and Secretary of Highland Capital Management Fund Advisors, L.P. and was previously a Senior Retail Fund Analyst at HCMFA and its predecessor since 2007. He has served as the Secretary of the funds in the Highland Fund Complex since November 2010 and as the Executive Vice President of the funds in the Highland Fund Complex since June 2012. Prior to joining HCMFA and its predecessor, Mr. Powell was the manager in the Merger and Acquisitions Division at Ernst & Young from 1999 to 2007.
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.04 | 39.02 | 7.24 | 2.42 |
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