Business Wire
New Frontier Advisors, LLC, a global leader in portfolio optimization and an ETF investing pioneer, announces the launch of two next-generation dividend income indices: the VettaFi New Frontier US Dividend Select Index and the VettaFi New Frontier International Dividend Select Index.
“These indices and their corresponding ETFs embody our mission to solve complex investor challenges using optimization techniques, creating highly efficient portfolios for reliable, long-term wealth building, preservation, and distribution. This launch sets a new standard in the ETF industry through effective investment technology.”
This groundbreaking initiative, developed in collaboration with VettaFi and Franklin Templeton, represents a significant advancement in dividend-focused investing.
“Our collaboration with VettaFi and Franklin Templeton marks a new era in dividend investing and ETF innovation,” said Robert Michaud, Chief Investment Officer at New Frontier. “These indices and their corresponding ETFs embody our mission to solve complex investor challenges using optimization techniques, creating highly efficient portfolios for reliable, long-term wealth building, preservation, and distribution. This launch sets a new standard in the ETF industry through effective investment technology.”
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Key Highlights of the Indices:
- Next-Generation Design: These indices achieve greater dividend yield than existing dividend indices with superior risk-adjusted dividend income using advanced optimization, leveraging commercial risk models and dividend forecasts.
- Filling a Market Need: Uniquely deliver both robust, sustainable dividend income and strong growth potential through diversified market exposure overcoming a traditional dividend trade-off.
- Holistic Optimization: Optimize the entire portfolio simultaneously, maximizing dividend exposure while effectively managing risk.
- Consistent Outperformance: Designed to achieve the highest reasonable dividend yield with rigorous risk management, demonstrating consistent outperformance in backtests, including during challenging market conditions.
“We are most excited to partner with New Frontier and Franklin Templeton on their new dividend multiplier ETFs,” Brian Coco, Head of Index at VettaFi. “Together we have created an innovative approach to dividend investing, showcasing the power of advanced optimization in addressing complex investment challenges.”
The indices were built using Michaud Optimization™, the only optimization method to earn patents and be certified by Nobel laureate Harry Markowitz to improve upon traditional methods.
Todd Mathias, Head of US ETF Product Strategy at Franklin Templeton, added: “Leveraging these cutting-edge indices, we’ve developed the Franklin U.S. Dividend Multiplier ETF (XUDV) and the Franklin International Dividend Multiplier ETF (XIDV). These ETFs aim to deliver superior dividend income while balancing yield and diversification, meeting the evolving needs of allocators and advisors seeking robust, sustainable income streams in complex market environments.”
Founded in 1999, New Frontier has been at the forefront of investment technology for over two decades, pioneering ETF portfolio construction. The firm specializes in portfolio optimization and asset management technologies, renowned for its proprietary Michaud Optimization™ and Intelligent Rebalancing™ processes. New Frontier’s mission is to solve complex investor challenges using optimization techniques, creating highly efficient portfolios for reliable, long-term wealth building, preservation, and distribution. New Frontier serves over 3,000 financial advisors and has published four books and more than 60 academic and professional articles.
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