| Index Overview |
| The Northern Trust Quality Dividend Dynamic Index is designed to provide exposure to a high-quality income-oriented universe of long-only U.S. equity securities, with an emphasis on long-term capital growth and a targeted overall beta1 that is generally between 1.0 to 1.5 times that of the Northern Trust 1250 Index (the parent index). Companies included in the index are selected based on expected dividend payment and fundamental factors such as profitability, management efficiency, and cash flow. |
| Index Construction |
| Optimized |
| Index Methodology |
The construction of the index begins with a universe of eligible securities. Securities ranking in the lowest quintile of quality based on our proprietary scoring model, as well as those which do not pay a dividend, are removed prior to optimization. All remaining eligible securities are then optimized based on their exposure to quantitative factors such as:
- Quality, as defined by our proprietary scoring model
- Dividend yield
- Beta
The main objective of the optimization is to maximize our exposure to the quality factor, realize a dividend yield above the benchmark index, and achieve our desired beta target all while minimizing the overall risk of the index versus its benchmark as measured by standard risk models.
For more details on this methodology, please see the Index Documents tab.
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| Index Return Streams Available |
- Price Return: NTUQDDY
- Total Return: NTUQDDYTR
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