NEW YORK--(BUSINESS WIRE)--Prime Indexes, an index creator focused on emerging trends in the ETF industry, launched its inaugural index, the Prime 5 U.S. Dividend ETF index (PFIVE), and licensed it to Amplify ETFs for the creation of a new income-oriented ETF. The fund was listed on BATS Global Markets on Sept. 21.
PFIVE is a rules-based index seeking to provide targeted exposure to the five highest-ranked ETFs with demonstrated dividend growth. The ranking is based on Prime Indexes’ proprietary Prime ScoreTM methodology and includes the following three factors: high dividend income, low share price volatility and low expenses. The index is rebalanced and reconstituted on a quarterly basis.
Prime Indexes was launched by ETF industry veterans Kris Monaco and Chris Yeagley, who recognized the growing trend of product proliferation within the space.
“ETFs have changed the investment landscape forever, but there are now thousands to choose from, and investors can be overwhelmed by the number of competing and complex products,” said Yeagley, who with Monaco is managing partner of Level ETF Ventures. “Investors need intuitive principles for identifying, evaluating and comparing ETFs, and we believe that a common sense approach to doing so is encompassed in our Prime ScoreTM methodology.”
The launch of PFIVE comes at a time when investors are seeking income in the form of dividends given the depressed state of interest rates. “Investors continue to seek access to income-focused investment strategies due to record low interest rates and a surge in retiring Baby Boomers,” said Christian Magoon, CEO of Amplify ETFs.
“Income-oriented investors need a tool that helps them navigate the growing population of dividend-generating ETFs, and PFIVE does just that,” Monaco added. “We are proud and excited to be partnering with Amplify ETFs in the launch of its fund based on our index, which provides a new approach to investing in dividend ETFs.”
Price and return data for PFIVE are independently calculated by Solactive AG and published by Prime Indexes. Prime Indexes is owned by Level ETF Ventures LLC.
About Amplify ETFs
Amplify believes the ETF structure empowers investors through efficiency, transparency and flexibility. Using those benefits as a foundation, Amplify seeks to build ETFs powered by investment strategies from leading index providers and asset managers within unique market segments. Amplify ETFs are sponsored by Amplify Investments, a registered investment advisor. Amplify is also the sponsor of YieldShares, a brand of income-oriented ETFs. The firm was founded by Christian Magoon, an ETF veteran who has launched over 50 ETFs in the United States to date.
About Level ETF Ventures
Prime Indexes creates financial indexes that solve problems for both professional and self-directed investors. Our index designs focus on emerging trends in the exchange-traded fund (ETF) industry, and our founders have participated in the creation and launch of over a hundred financial products and indexes across all major asset class. Prime Indexes are used as the basis for innovative new investment solutions for investors, and use intuitive design principles so that new investment products can ultimately provide low-cost, efficient, and convenient access.