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COWS

Kelly US Cash Flow Dividend Leaders Index

Why Exposure to this Index

The strategy targets US companies with high free cash flow and consistent dividend growth. The Index utilizes a Forward FCF Yield and Trailing FCF Yield ranking system. Free Cash Flow (FCF) Yield measures the amount of cash generated from the core operations of a company relative to its valuation.

INDEX DETAILS

Index Name
Kelly US Cash Flow Dividend Leaders Index
Ticker
COWSETF
Forward FCF Yield
11.17%
Trailing FCF Yield
8.19%
Trailing 12 Month Dividend Yield
2.21%
Number of Constituents
56
Rebalance
Quarterly
Market Cap
Mid and Large
Index Calculator
Syntax LLC
Date
9/30/2023

Documents

Importance of Forward Free Cash Flow Report
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Index Rulebook
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How to Invest in Free Cash Flow Yield
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Index Overview

The Kelly US Cash Flow Dividend Leaders Index (the “Index”) comprises at least 40 and up to 100 large- to mid-cap publicly traded US companies exhibiting characteristics of high free cash flow and consistent dividend growth. The Index equally weights the constituent stocks that meet the most stringent criteria, and weights any remaining constituents in proportion to their free cash flow yields.

  • The Index factors in Forward FCF Yield (defined as estimated forward-year free cash flow per share divided by share price) as part of its screening process.
  • The Index’s Universe is drawn from the Syntax US 1000 Index (SY1000). Candidates are identified using Syntax FIS data classifying their issuing entities as outside the Financials Sector.
  • First Value Date: 21 September 2007.
  • Reconstitution: Quarterly — each March, June, September and December (the “Reconstitution Months”).
  • Free cash flow is the cash remaining after a company has paid expenses, interest, taxes, and long-term investments. It can be used to buy back stock, pay dividends, or participate in mergers and acquisitions.
  • The ability to generate a high free cash flow yield indicates a company is producing more cash than it needs to run the business and can invest in growth opportunities.
  • The Index uses company classification data structured in Syntax’s proprietary Functional Information System (FIS), which draws primarily from audited annual reports (e.g., 10-K filings) and secondarily from unaudited documents (e.g., news articles, company websites) to allow granular groupings and comparisons of companies by the characteristics of their various product lines.

 

Performance

Past performance is no guarantee of future results. Some of the performance presented herein is backtested performance. Backtested performance is not actual performance, but is hypothetical. The backtest calculations are based on the same methodology that is intended to be used when the index is officially launched. However, back-tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index. The index methodology and backtested performance is subject to change prior to inception. Charts, graphs, and graphics are provided for illustrative purposes only.

Sector Exposure

Data as of: September 30th, 2023

Invest Now

It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. Kelly Indexes, LLC does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. Kelly Indexes, LLC licenses its indices to third parties for the creation of investment funds or other vehicles, such as exchange-traded funds (ETFs), exchange-traded notes (ETNs), institutional asset mandates, and structured notes.

The information contained does not reflect the performance of any fund or account managed or serviced by Strategic Investments, and there is no guarantee that investors will experience the type of performance reflected above. There is no guarantee that any historical trend illustrated herein will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that any market forecast made in this commentary will be realized. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security and should not be relied upon as investment advice. The views and opinions in the preceding commentary are as of the date of publication and are subject to change without notice. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice, is not intended to predict or depict performance of any investment and does not constitute a recommendation or an offer for a particular security. We consider the information in this presentation to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment.