WBI Power FactorTM High Dividend ETF (WBIY) seeks to provide high current income through a proprietary dividend-focused strategy that selects and weights stocks based on WBI's Power Factor methodology. This income-focused equity ETF targets companies with sustainable dividend yields while applying risk management overlays to protect capital during market downturns.
How It Works
WBIY employs an actively managed approach using WBI's proprietary Power Factor system, which evaluates stocks based on dividend sustainability, financial strength, and technical momentum indicators. The fund typically holds 30-50 positions concentrated in dividend-paying stocks across various sectors, with position sizes determined by the Power Factor scoring system rather than market capitalization. Portfolio managers actively adjust holdings and may implement hedging strategies during adverse market conditions, rebalancing monthly or as market conditions warrant.
Key Features
- Proprietary Power Factor methodology combines fundamental dividend analysis with technical risk management for enhanced income generation
- Active management approach allows tactical positioning and hedging during market stress, unlike passive dividend ETFs
- High 5.14% dividend yield targets income-seeking investors while maintaining focus on dividend sustainability metrics
Risks
- This ETF can lose value if dividend-paying stocks underperform growth stocks, as income strategies often lag during bull markets focused on capital appreciation
- Active management risk means the fund may underperform passive dividend ETFs if the Power Factor methodology fails to add value
- Concentrated portfolio of 30-50 holdings creates higher individual stock risk compared to broadly diversified dividend ETFs with hundreds of positions
Who Should Own This
Best suited for income-focused investors with 3-5 year time horizons seeking current dividend income over capital appreciation. Medium risk tolerance required due to equity volatility and active management. Works as a satellite holding (10-25% of portfolio) for retirees or pre-retirees prioritizing cash flow generation from their investment portfolios.