Minisode - A Dividend-Value Income Solution

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About the Episode

Advisors Asset Management (AAM) is a leading provider of income-generating investment solutions. It entered the ETF market in 2017 and offers investors an innovative high dividend value strategy across domestic, emerging and international developed markets. These ETFs focus on income and value, seeking to help investors meet their current cash flow and future capital appreciation goals.

About our Guest

Lance McGray is managing director and head of ETF products at Advisors Asset Management. He has spent the majority of his 14 year career creating and managing exchange-traded funds (ETFs). Over his career he has successfully launched over 50 ETFs with three different ETF sponsors. In his current role, he is responsible for the creation and execution of AAM’s ETF business.

Show Notes

Here is a link to the Advisors Asset Management website for more information about its products.


View each ETF’s prospectus: SPDV, DMDV, EEMD, PFLD.

AAM ETFs are distributed by Quasar Distributors, LLC. References to other mutual funds or products should not to be considered an offer to buy or sell these securities. Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security. Click to view current holdings: SPDV, DMDV, EEMD, PFLD. The SPDV expense ratio is 0.29%. The DMDV expense ratio is 0.39%. The EEMD expense ratio is 0.50%. The PFLD expense ratio is 0.45%.

Investing involves risk, including the possible loss of principal. Diversification does not assure a profit or protect against a loss in a declining market. Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may be only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns. Companies with high yield or payout ratio may underperform other securities in certain market conditions and reduce or discontinue paying dividends entirely while included in the index. The Fund’s return may not match or achieve a high degree of correlation with the return of the underlying Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index. The value of a company’s preferred stock will react more strongly than bonds and other debt to actual or perceived changes in the company’s financial condition Preferred stock is subject to the risks that a company may defer or not pay dividends, and, in certain situations, may call or redeem its preferred stock or convert it to common stock. During periods of falling interest rates, an issuer of a callable security held by the Fund may “call” or repay the security before its stated maturity, and the Fund may have to reinvest the proceeds at lower interest rates. Investments in small and mid-cap companies may involve less liquidity and greater volatility than larger companies. There is no guarantee that distributions will be made. Nothing contained on this communication constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.

Past performance is not a guarantee of future results. Index performance is not illustrative of fund performance. One cannot invest directly in an index. Please call 1.800.617.0004 for fund performance.

Definitions: Beta is a measure of the volatility, or systematic risk, of a portfolio in comparison to the market as a whole. A beta of 1.00 is equal to that of the market; a beta lower than 1.00 indicates lower volatility than the market, while a beta greater than 1.00 indicates higher volatility than the market. Cash flow is the net amount of cash and cash-equivalents moving into and out of a business. Correlation is a statistical measure of how two variables move in relation to each other with coefficients ranging from +1 to -1. A correlation coefficient of +1 implies that as one variable moves, the other will move in exact lockstep. Alternatively, a correlation coefficient of -1 implies that if one variable moves, the other moves in the same amount in the opposite direction. If the correlation is 0, the movements of the variables are completely random. Dividend yield is a stock’s annual dividend relative to the stock price. Free cash flow is the excess cash that a business has after paying all of the operations and capital expenditures. Free cash flow yield is a stock’s free cash flow per share relative to the stock price. S&P 500 Index is an unmanaged market capitalization weighted index used to measure 500 companies chosen for market size, liquidity and industry grouping, among other factors. Yield is the rate of return on an investment expressed as a percent, often calculated by dividing the amount you receive annually in dividends or interest by the amount you spent to buy the investment.

ESG refers to environmental, social and governance investing.