Exchange-traded fund to launch by year-end and track highest dividend yields from US companies

A fund tracking US companies with the highest dividend yields is set to launch by the end of the year. The exchange traded fund will be based on the Dow Jones Select Dividend Index, a 50-strong list chosen from the DJ US Total Market Index. Dow Jones is hoping the new index will profit from recent US tax changes. Ridgely Walters, senior director of client development/sales Americas, said: "With new lower US tax rates on dividends, more investors are becoming interested in companies issuing them." The DJ Select Dividend Index is reviewed every December. Components and weightings are avail...