UBS IQ Morningstar Australia Dividend Yield ETF

Overview

Effective 1 February 2016, the fund’s underlying index changed from the UBS Research Preferred Dividend Index to the Morningstar® Australia Dividend Yield Focus IndexTM. As a result of this change and also effective from 1 February 2016, the name of the fund has changed from UBS IQ Research Preferred Australian Dividend Fund to UBS IQ Morningstar Australia Dividend Yield ETF. The Fund’s ASX 'DIV' ticker remains the same.

Please see the relevant communication found on the UBS IQ ETFs webpage under "Announcements & Product updates", alternatively you can view the ASX announcement on the ASX website.

The Fund  

The UBS IQ Morningstar Australia Dividend Yield ETF ("Fund") aims to replicate the performance of the Morningstar® Australia Dividend Yield Focus IndexTM before fees and expenses. The Fund is an exchange traded fund (“ETF”) which is a registered managed investment scheme and can be traded on the ASX. The Fund allows investors, in one transaction, to gain exposure to a diversified portfolio of listed Australian securities that, according to Morningstar equity research, are forecast to offer sustainable income via the distribution of dividends and franking credits. The Fund provides investors with the benefits of a managed fund along with the flexibility of listed securities.

The Index  

The Morningstar® Australia Dividend Yield Focus Index™, provides exposure to the equities of high-quality Australian-domiciled companies with strong financial health and an ability to sustain above-average dividend payouts. Companies must have a strong balance sheet and a sustainable competitive advantage as deemed by Morningstar equity research team.

The index consists of 25 stocks screened for their dividend yield. The index is reconstituted and rebalanced semi-annually. The Index is weighted according to the dividends paid by each company that are available to investors. Consequently, the available dividend dollar value is the product of the security’s shares outstanding, free float factor, and annual indicated dividend per share. At the time of rebalancing and reconstitution, the largest weight in the index will not exceed 10% and the sum of the constituent weights that are each greater than 5% will not exceed 50%.

Key benefits  

  • Research: Access to a portfolio of securities constructed by reference to Morningstar research, amongst other things
  • Distributions and franking credits: The Index is constructed with an emphasis on forecast dividend yield and financial statement quantitative factors.
  • Diversification: Access a diversified investment through one transaction
  • Liquidity: Intra-day trading with units traded continuously throughout each ASX business day
  • Transparency: The Fund is designed to replicate the performance of the Index, therefore providing transparent performance

Investment objective  

The Fund’s investment objective is to replicate the performance of the Morningstar® Australia Moat Focus IndexTM, before fees and expenses.

Trading  

To purchase a UBS IQ Morningstar Australia Dividend Yield ETF contact your broker or financial advisor.

Fund details

Name of Fund

UBS IQ Morningstar Australia Dividend Yield ETF

ASX code

DIV

ISIN

AU000000DIV6

Currency

AUD

Launch date

16 January 2014

DIV share class NAV

$24,897,755.37

Total Fund NAV

$24,897,755.37

NAV per unit

19.51

NAV date

26 September 2016

Number of ETF share class units

1,275,987.00

Typical number of fund holdings

25

Management costs

0.30% p.a.

Distribution frequency

Quarterly

Index details

 

Index name

Morningstar® Australia Dividend Yield Focus IndexTM

Typical number of Index holdings

25

Reweighting frequency

Semi annually

Index ticker (Bloomberg)

MSDIADFA Index

Index ticker (IRESS)

tbd

Daily index level

1672.74

Trading information

ASX code

DIV

Intra-day NAV code

YDIV

ETF Bloomberg ticker

DIV.AU

ETF IRESS ticker

DIV.AXW

Trading hours

10am-4.10pm