Morningstar often criticizes ETFs for have too much concentration in the top ten. This new fund, according to this article, based on their index, has 62% in the top ten. Oops. [I've since confirmed the 62% figure with Morningstar.]
The article also quotes Morningstar talking about differentiation. OK, well here are the tickers, again according to the article, for the top five holdings: C, BAC, MO, VZ and JPM. Let's compare to other equity income ETFs:
The top five of DVY include MO, BAC, PNC, DTE, and PNW. The top ten account for 25.86%
The top five for PEY are MRK, WM, T, Progress Energy and Fnb corp. The top ten account for 26.28% of the fund.
The top five for SDY are CAG, ED, Vectren, First Horizon Natl and MO. The top ten account for 28.23% of the fund.
After doing that study I did not change the comment above about differentiation, but maybe I should have because the names are reasonably different.
If correct, I think the the new Morningstar ETF might correlate very closely to the two mega-cap ETFs; the iShares S+P 100 (NYSEARCA:OEF) and the Rydex Russell Top 50 (NYSEARCA:XLG), but it's too early to tell.