
Portfolio optimisation and an ETF investing company New Frontier Advisors has introduced two next-generation dividend income indices.
Dubbed the VettaFi New Frontier US Dividend Select Index and the VettaFi New Frontier International Dividend Select Index, both solutions aim to transform dividend-focused investing.
The initiative, developed in collaboration with VettaFi and Franklin Templeton, also addresses key market needs with innovative portfolio strategies.
The new indices are designed to deliver superior dividend yields while maintaining robust risk management.
By utilising advanced optimisation techniques, the indices aim to generate sustainable income and strong growth potential by overcoming traditional trade-offs in dividend investing.
The indices will also leverage commercial risk models and dividend forecasts to provide a holistic approach to portfolio construction, maximising dividend exposure while managing risk effectively.
Backtests have demonstrated consistent outperformance of the indices, even in challenging market conditions, said the company.
This reflects their ability to achieve the highest reasonable dividend yield through rigorous risk management.
In addition, these indices incorporate Michaud Optimisation, the patented and Nobel-certified method created by New Frontier, which improves upon traditional optimisation techniques.
New Frontier chief investment officer Robert Michaud said: “Our collaboration with VettaFi and Franklin Templeton marks a new era in dividend investing and ETF innovation.
“These indices and their corresponding ETFs embody our mission to solve complex investor challenges using optimisation techniques, creating highly efficient portfolios for reliable, long-term wealth building, preservation, and distribution. This launch sets a new standard in the ETF industry through effective investment technology.”
Established in 1999, New Frontier specialises in ETF portfolio construction and asset management technologies. The firm is also said to serve more than 3,000 financial advisors.