AAM S&P Emerging Markets High Dividend Value ETF (EEMD)

Overview

The index operates as a meticulously structured, equal-weighted financial instrument, meticulously engineered to provide investors with access to a select group of companies within the S&P Emerging Plus LargeMidCap Index. This selection criterion focuses on those companies that not only offer high dividend yields but also demonstrate a sustainable pattern of dividend distributions. A significant emphasis is placed on ensuring diversified sectoral representation, thereby mitigating risks associated with over-concentration in any single industry. Aligning with its strategy, the index mandates that at least 80% of its net assets are allocated towards equity securities. These securities must fulfill two critical conditions: they must be economically tied to Emerging Markets, thereby offering exposure to the growth potential in these regions, and they must have recorded a positive realized annual dividend yield within the preceding year, ensuring that the companies included have a track record of returning value to shareholders.

Products and Services

• Investment in High Dividend Yielding Equities

  This product focuses on investing in companies listed within the S&P Emerging Plus LargeMidCap Index that demonstrate a high dividend yield. The strategy behind this focus is to provide investors with a steady income stream through dividends, which is particularly appealing for those seeking regular income from their investments. By strictly selecting companies that have shown a positive realized annual dividend yield in the past year, the index ensures that its constituents are not only capable of paying dividends but have also done so recently, which can be a marker of financial stability and a commitment to shareholder returns.

• Sustainable Dividend Distribution Characteristics

  This aspect of the service offering emphasizes the sustainability of dividend distributions by the companies within the index. It's not just about the current yield but also the predictability and reliability of these yields over time. Investing in companies that have sustainable dividend distribution characteristics means that these companies are evaluated not only for their ability to pay dividends now but also for their potential to continue doing so in the future. This approach is intended to attract investors who are looking for long-term, stable income from their equity investments in emerging market countries.

• Diversified Sector Exposure

  To mitigate risk, the index maintains diversified sector exposure among its constituents. This strategy involves spreading investments across various sectors within the emerging markets, thereby reducing the vulnerability to negative performance in any single sector. The diversified sector exposure ensures that the index's performance is not disproportionately affected by sector-specific trends or downturns, which can be particularly volatile in emerging markets. This diversification is beneficial for investors seeking to balance potential returns with risk management across their investment portfolio.