New Frontier Advisors Unveils Innovative Dividend Indices
New Frontier Advisors Unveils Innovative Dividend Indices
BOSTON -- New Frontier Advisors, LLC, a renowned leader in portfolio optimization and ETF investing, has launched two state-of-the-art dividend income indices. The focus of these new indices is on delivering enhanced yield and investment efficiency for both domestic and international dividend strategies.
The Launch of Groundbreaking Indices
Working together with strategic partners VettaFi and Franklin Templeton, New Frontier is making significant strides in dividend-focused investing. This initiative aims to address complex challenges faced by investors looking to maximize their income potential while managing risk effectively.
Collaboration for Greater Innovation
Robert Michaud, Chief Investment Officer at New Frontier, expressed enthusiasm about the partnership, stating, "Our collaboration with VettaFi and Franklin Templeton represents a breakthrough in ETF innovation. The indices and their associated ETFs exemplify our mission to solve intricate investor challenges through advanced optimization techniques, resulting in efficient portfolios that facilitate long-term wealth accumulation, preservation, and distribution."
Key Features of the Next-Generation Indices
The newly developed indices come with unique features designed to set a new benchmark in yield-focused investing, including:
- Next-Generation Design: By utilizing advanced optimization strategies, these indices not only yield higher dividends than their predecessors but also enhance risk-adjusted income, catering to investors seeking reliable returns.
- Filling a Market Need: The indices address the common dilemma faced by investors—achieving robust and sustainable dividend income without compromising on growth potential.
- Holistic Optimization: A comprehensive approach is employed to optimize the entire portfolio, ensuring maximizing dividend return while effectively managing associated risks.
- Consistent Outperformance: Backtested results show these indices consistently outperform during various market conditions, demonstrating resilience and reliability.
Expert Insights on the Indices
Highlighting the innovative nature of these indices, Brian Coco, Head of Index at VettaFi stated, "We are thrilled to partner with New Frontier and Franklin Templeton on their new dividend multiplier ETFs. This collaboration showcases how advanced optimization methods can tackle sophisticated investment challenges."
The Technology Behind the Indices
The indices utilize Michaud Optimization™, a patented method recognized by Nobel laureate Harry Markowitz, which enhances traditional financial modeling techniques. This proprietary technology is pivotal for achieving superior investment outcomes and advancing industry standards.
Franklin Templeton's Role
Todd Mathias, Head of U.S. ETF Product Strategy at Franklin Templeton, discussed the practical applications of these indices. He noted that they have created two ETFs: the Franklin U.S. Dividend Multiplier ETF (XUDV) and the Franklin International Dividend Multiplier ETF (XIDV). These ETFs are strategically designed to deliver outstanding dividend income while balancing yield and diversification to meet the evolving demands of investors.
About New Frontier Advisors
Founded in 1999, New Frontier Advisors has established itself as a leader in investment technology over the past two decades. The firm specializes in optimizing ETF portfolio construction and asset management, renowned for its proprietary optimization processes. With a mission to tackle complex investor challenges, New Frontier has successfully served over 3,000 financial advisors and contributed to industry knowledge through various publications.
New Frontier continues to innovate in the investment space, focusing on creating highly efficient portfolios tailored for long-term success.
Frequently Asked Questions
What are the main features of the new dividend indices?
The new indices feature advanced optimization techniques, greater yields than existing indices, and provide robust income while managing risk effectively.
How does New Frontier Advisors utilize Michaud Optimization™?
Michaud Optimization™ enhances traditional investment strategies by allowing for more efficient portfolio construction, ultimately leading to better performance in varied market conditions.
What ETFs are associated with the new indices?
The associated ETFs are the Franklin U.S. Dividend Multiplier ETF (XUDV) and the Franklin International Dividend Multiplier ETF (XIDV), designed for superior income generation.
Who are the key partners in this initiative?
The initiative is a collaboration between New Frontier Advisors, VettaFi, and Franklin Templeton, bringing together expertise in portfolio management and financial technology.
How long has New Frontier Advisors been in operation?
New Frontier Advisors has been operating since 1999, with two decades of experience in investment technology and portfolio optimization.
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