The Power Dividend Mid-Cap Index Fund (DMCAX, DMCCX, DMCIX) tracks the W.E. Donoghue Power Dividend Mid-Cap Index (PWRMDXTR), a rules-based index calculated by Standard and Poor’s CustomIndexes. The index will direct investments into 50 stocks derived from the S&P 400 Index. The index employs an intermediate term tactical overlay to determine whether to be in a bullish or defensive posture.
The tactical overlay will shift the assets to short-term treasuries based upon technical analysis, should market conditions warrant. When in a bullish posture, the index methodology selects 50 stocks derived from eleven of the Global Industry Classification Standard (GICS) sectors, and selection is based on the highest dividend yields as of the last trading day of May. The index is cap weighted into the following eleven GICS sectors: Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrials, Information Technology, Materials, Telecommunications, REITs and Utilities. The index will carry a minimum 4% weight and a maximum 20% weight to each sector (Information Technology & Telecommunications are combined for these calculations).
When in a defensive position, the index will be invested in the S&P U.S. Treasury Bond 1-3 Year Index, thus the portfolio will be invested in short term Treasury ETFs to obtain exposure. When in a bullish posture, the index and portfolio will rebalance holdings quarterly and re-constitute annually.
Where to Purchase
The Power Dividend Index Fund will be available to purchase through the following:
- Charles Schwab
- Fidelity Investments
- National Financial Services
- TD Ameritrade
For the latest availability call: 1 (800) 642-4276.