Mergent Announces Launch of Three New Dividend Achievers(TM)-based ETFs on the American Stock Exchange
October 03 2005 - 6:45PM
PR Newswire (US)
The ETFs offer a wide range of dividend-focused investment
strategies NEW YORK, Oct. 3 /PRNewswire/ -- Mergent, Inc. announced
today that three new exchange-traded funds (ETFs) based on its
Dividend Achievers(TM) methodology began trading on the American
Stock Exchange (AMEX) on September 15, a day that was declared
Dividend Achievers Day at the AMEX. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050615/CLTU036LOGO ) The new
ETFs, managed by PowerShares Capital Management LLC, include the
Broad Dividend Achievers(TM) Portfolio (ticker "PFM"), the High
Growth Rate Dividend Achievers(TM) Portfolio ("PHJ"), and the
International Dividend Achievers(TM) Portfolio ("PID"). With the
introduction of these three new products, there are now a total of
four Dividend Achievers-based ETFs on the market. The fourth
product is the PowerShares High Yield Equity Dividend Achievers(TM)
Portfolio ("PEY"), which was launched in December 2004. All four of
these ETFs - based on Mergent's Dividend Achievers(TM) methodology
and indexes -- have outperformed their benchmark indexes over the
past 10 years, with lower risk/volatility. A Wide Range of
Dividend-Focused Strategies Taken together, these four funds offer
a wide range of dividend-focused investment strategies, with each
fund appealing to investors with different investment objectives: -
Broad Dividend Achievers (PFM) for total return. This fund
represents the "growth and income" middle ground between the High
Yield (PEY) and High Growth (PHJ) funds. The PFM fund tracks the
performance of Mergent's Broad Dividend Achievers(TM) Index
(aggregate total return of all the Dividend Achievers stocks). This
index (AMEX ticker "DAA"), has outperformed the Standard &
Poor's 500 Index in the 5-, 10-, 15- and 20-year periods ended
August 31, 2005, with lower risk/volatility. - High Yield (PEY) for
yield and stability. With the highest yield among the four ETFs,
PEY is appropriate for more conservative, income- oriented
investors. The fund tracks the performance of The Dividend
Achievers 50(TM) Index (ticker "DAY"), which includes the 50
highest yielding Dividend Achievers stocks. - High Growth Rate
(PHJ) for capital gains. This fund tracks the performance of the
High Dividend Growth Rate Dividend Achievers(TM) Index (ticker
"DAH"), covering the 100 Dividend Achievers with the greatest
10-year dividend growth rate. Going forward, anticipated faster
earnings growth should support faster share price appreciation, and
given the fund's relatively lower yields, a bigger portion of
returns are expected to come from capital gains. - International
Dividend Achievers (PID) for valuation. This fund tracks the
performance of the International Dividend Achievers(TM) Index
(ticker "DAT"), which includes approximately 50 securities (stocks
and ADRs) from Canada, Europe and Asia that both meet the Dividend
Achievers requirements and are listed on the U.S. market. The case
for this fund goes beyond the diversification motivation for
foreign exposure. Valuations of these foreign securities trading on
U.S. markets are modestly cheaper than their domestic counterparts,
even though their profitability is on a par with the U.S. stocks.
"We are meeting ever-increasing demands for investment products
related to our Dividend Achievers Indexes, and are very pleased to
continue our relationship with the Amex and with PowerShares. We
create and deliver the best dividend-focused investment products to
institutional and individual investors," said Mergent CEO Jonathan
Worrall. "These new ETFs come at a time of strong interest in
dividends as a component of overall returns," said Cliff Weber,
senior vice president of the Amex's ETF Marketplace at the launch
of the new ETFs. "They give investors an opportunity to participate
in an area of tremendous growth, and unite two innovative market
participants with strong ties to the Amex." Dividend Achievers: The
Potential for Long-Term Outperformance Mergent, Inc. developed the
proprietary methodology that identifies Dividend Achievers --
companies that have consistently increased their regular annual
dividends to shareholders for at least the past ten or more
consecutive years (five years or longer for foreign companies). It
has been identifying Dividend Achievers since 1979. Companies that
meet this stringent requirement tend to be high quality firms, with
strong cash flows and solid balance sheets, and with the potential
for long-term outperformance. Each year, less than 3% of the U.S.
stocks listed on the NYSE, AMEX and NASDAQ qualify as Dividend
Achievers. In 2005, 314 companies have met that standard. About
Mergent Mergent, Inc., a Xinhua Finance company (TSE Mothers:
9399), is the preferred leading provider of business and financial
data on global publicly listed companies. The company is
headquartered in New York, NY, and Charlotte, NC, with sales
offices in key North American cities as well as London, Shanghai,
Tokyo, Toronto, and Sydney. Mergent's databases include information
on more than 15,000 U.S. public companies and 20,000 non-U.S.
public companies in more than 100 countries. Mergent is the
publisher of the Dividend Achievers(TM) family of indexes including
Broad, International, High Growth and Canadian. Mergent products
and services include Ford Equity Research, independent equity
research with buy, sell and hold recommendations; Mergent Online;
Mergent Manuals, Handbooks and Investment Guides; EventsData, web-
based reporting of corporate actions and events; BondSource, access
to municipal and corporate fixed income data and end-of-day
evaluation pricing. For more information, visit our websites,
http://www.dividendachievers.com/ and http://www.mergent.com/.
About Xinhua Finance Limited Xinhua Finance Limited is China's
premier financial services and media company and is listed on the
Mothers board of the Tokyo Stock Exchange (symbol: 9399) (OTC ADRs:
XHFNY). Rooted in China with a global presence, Xinhua Finance
services financial institutions, corporations and re- distributors
through four focused and complementary service lines: Indices,
Ratings, Financial News and Investor Relations. Founded in 1999 and
based in Hong Kong, the Company has 17 offices and 22 news bureaus
across Asia, Australia, North America and Europe and covers key
Chinese and international markets. For more information, please
visit http://www.xinhuafinance.com/.
http://www.newscom.com/cgi-bin/prnh/20050615/CLTU036LOGO
http://photoarchive.ap.org/ DATASOURCE: Mergent, Inc. CONTACT: Lew
Koflowitz of Strategic Design Group of NY, Inc., +1-212-924-8151,
or cell, +1-914-924-5311; or Shirley Petersen, Vice President,
Index Licensing of Mergent, Inc., +1-212-413-7751, or Web site:
http://www.mergent.com/ http://www.dividendachievers.com/
http://www.xinhuafinance.com/
Copyright