Event Details:

The long term potential of dividend growth
Wednesday, December 4th, 2019
11:00am – 12:00pm est

KLCD and KSCD were created to utilize several factors and optimal investment approaches. The ETFs offer a unique exposure to both quality and momentum investment factors.

• Overview of KFA Small Cap Quality Dividend Index ETF (KSCD) and KFA Large Cap Quality Dividend Index ETF (KLCD) and how they can be incorporated into a portfolio.


• Dividend growth offers a strong quality characteristic. “The ability for a firm to continuously increase dividends shows financial confidence, exhibiting a greater ability to generate consistently positive and growing earnings. Additionally, these firms’ balance sheets are typically more conservative and in sound position. These quality characteristics in an investment can indicate less volatility on a relative basis” ⁱ. Additionally, Dividend Growth stocks have historically outperformed other stocks with less volatilityⁱ.


• Regarding the momentum factor, KLCD and KSCD offer exposure to price-based momentum. The ETFs follow systematic strategies, choosing investments that exhibit relative price strength versus peers. Over the long-run, price momentum has proven to be a strong indicator for making investment allocations from a risk, return and behavioral perspectiveⁱⁱ.


• Additionally, the ETFs are equal weighted. “Equal weight indexes have been known to outperform when compared to market capitalization weight indexes. An equal weight index allows for an investor to inherently participate in a buy-low sell-high strategy, but it also offers broad diversification by avoiding concentration in the largest companies” ⁱⁱⁱ.