Dividend and Smart Beta Indices

What is Smart Beta Indices?

Currency or money doesn't have the same value over time. They have to face rise and fall, and they are inversely proportional to the changes in the price level. This means with the rise in the price level, the value of money decreases. 

The index number is a technique that helps us measure different changes in a variable or any other of its characteristics concerning time. 

Lags in the Method

There are researches that State it to be a "not so good" a way to calculate the factors. This is because of the factor exposure that Smart Beta Indices provide varies greatly. Though, they are considered to be a good tool for gaining factor exposure. 

History of Smart Beta Indices

Smart Beta Indices were originally tossed by Harry Markowitz in his work on Modern Portfolio Theory. 

Index numbers are studies to observe the changes in the effects of such factors that can't be measured directly. 

What is Dividend Indices?

The to-date best method to espouse a dozen strategies for the generation of returns is the Dividend Indices. Hence depending upon the performance of the top 50 securities in the parent index, there are different dividend indices that are increased or maintained and ranked by their dividend yield. 

The measure of the best performing stock based on the dividend yield performance is known as the Dividend Indices. The content of indices can be any number of stocks, still, it is rarely above the count of 100.

Factors influencing stocks that are to be Chosen

There are different factors that influence the stocks to be chose 

Some of them are

Dividend per share

Dividend payout percentage rate and average daily trading volume. 

The main dividend indices are Dow Jones Us select dividend index

The S&P Global dividend opportunity index, that contains roughly above200 high yielding stocks 

S&P 500 dividend aristocrats index.

Source:   https://sites.google.com/site/indexcalculations/dividend-and-smart-beta-indices