Recommended Change within UPAL Large Cap Value Fund

As part of the oversight and due diligence on investments, we routinely check the pricing of plan investments to ensure that the most appropriate fund option is available.  Upon the advice of the Strategic Investment Advisory Group, the SDPR S&P Dividend ETF will be replaced with the Schwab Dividend ETF as the dividend-focused strategy within the UPAL Large Cap Value Fund effective immediately. The Schwab ETF has a lower expense ratio (0.06% versus 0.35%).  The Schwab ETF has historically tracked its index, the Dow Jones US Dividend 100 Index, closer than the SPDR ETF has tracked its index, the S&P High Yield Dividend Aristocrats Index.  The Dow Jones US Dividend Index has provided better total returns and risk-adjusted returns, in addition to providing better downside protection in most market declines over the last decade. The Schwab ETF strategy is more focused on the large cap space and does not dip into smaller companies like the SPDR ETF strategy.

 

Implementation of these changes will become effective immediately.  Should you have any questions or concerns, please do not hesitate to contact UPAL at 918-747-5585.