“What was once old, is new again” is a phrase that can be used in regards to the recently launched BMO Global Dividend Opportunities Fund (Ticker: BGDV), as the new solution is the ETF Series offering of a pre-existing mutual fund; that has also undergone some recent changes, here.

As a globally oriented dividend solution, BGDV can invest in the equity of companies across the world that fit its stated investment criteria, which are (i) equity securities that trade below their intrinsic value, (ii) demonstrate superior earnings growth, and (iii) dividend growth. Beyond those quantitative attributes, qualitative characteristics such as the quality of management and research and development practices to assess the company’s potential for growth are also considered.

Dividend investing has become an important source of potential income for investors, as such there have been notable dividend-focused mandates that have been launched throughout this year.

Recently Launched Dividend ETFs

Manulife Smart Global Dividend ETF Portfolio |Ticker: GDIV | Inception Date: May 17, 2023

Launched in May 2023, the Manulife Smart Global Dividend ETF Portfolio (Ticker: GDIV) is an ETF-of-ETFs solution. The underlying funds are the Manulife Smart U.S. Dividend ETF (Ticker: UDIV), Manulife Smart International Dividend ETF (Ticker: IDIV.B), Manulife Smart Dividend ETF (Ticker: CDIV), each reflective of U.S., International, and Canadian dividend-paying securities, respectively. The ETF’s cash allocation is attributed to the Manulife Smart Short-Term Bond ETF (Ticker: TERM).

The ETF employs an asset allocation process that allows for tactical calls based on the manager’s view of the market at a given point in time. The ETF has an allowable range for each asset class, namely, equity ETFs have a minimum to a maximum range of 80% to 100%, whereas cash/cash equivalents/short-term bond ETFs have a minimum to maximum range of 0% to 20%.

As a point of contrast, the clear distinction between GDIV and BGDV is each fund’s underlying holdings selection, in that the latter invests directly in equity securities, while the former uses proprietary (i.e., Manulife) ETFs to gain market exposure.      

AGF Enhanced U.S. Equity Income Fund | Ticker: AENU | Inception Date: August 21, 2023

For dividend-focused investors within the U.S. Equities arena, the AGF Enhanced U.S. Equity Income Fund (Ticker: AENU) is an actively managed solution that invests in businesses with a history of a high, consistent yield and/or demonstrated dividend growth. The investment approach utilized by the manager will employ fundamental analysis and an in-depth evaluation of companies to determine their suitability as holdings within the portfolio. Central to this evaluation is assessing companies through the lens of quality, growth, and valuation investment factors.

Beyond the difference in geographic exposure, a crucial point of demarcation between BGDV and AENU is the latter’s use of a dynamic option overlay strategy. Regarding this mandate, AGF believes that a diversified portfolio of dividend-paying U.S. equity securities combined with an actively managed option writing strategy may provide an attractive risk-adjusted return profile and consistent income. For greater insight on this mandate, a fulsome article is available here.

Dynamic Active Global Equity Income | Ticker: DXGE | Inception: October 20, 2023

A globally focused mandate, Dynamic Active Global Equity Income ETF (Ticker: DXGE) will invest primarily in a wide range of equity securities which includes dividend-paying equity securities and real estate investment trusts, as well as in other types of equity securities.

The manager follows a bottom-up fundamental investment approach to identify high-quality businesses by evaluating characteristics such as financial conditions, quality of management, earnings growth potential, and competitive positioning in relation to economic and industry environments. Investments may be eliminated when original attributes are no longer attractive in the opinion of the portfolio manager.

Both BGDV and DXGE are very similar in their investment approach to dividend investing, even having similar benchmarks (i.e., MSCI World Index), management fees (i.e., 0.75%), and distribution frequencies (i.e., monthly).

For Canadian dividend-focused investors, there is currently a large pool of investment solutions that they can select from;  BGDV and the other recently launched ETFs provide them with added optionality and the ability to choose a mandate that truly aligns with their long-term investment goals.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.