The AdvisorShares Athena High Dividend ETF (NYSEARCA:DIVI) uses a behavioral finance approach to identifying global holdings that would fit this smart beta model.
The firm measures behavioral factors of active equity fund investment managers (strategy, consistency and conviction) and identifies stocks which are held in the top relative weight positions of their portfolios; the fund is then dividend weighted while sector, strategy and country diversification are used to reduce fund risk.
"The need for shareholder yield is well known, however, most equity dividend funds focus on dividends first and stock selection second. DIVI aims to provide high yield to investors while taking a patented behavioral approach to stock selection," said Noah Hamman, chief executive officer of AdvisorShares.
The AdvisorShares Athena International Bear ETF (NYSEARCA:HDGI) is the only other fund to utilize a behavioral finance approach to identifying securities; but in its case, to find short positions.