A Yield Tilt Index Fund holds the same stocks as an index, but makes a greater weighting to stocks that pay higher dividend yields. Thus it modifies the index weights based on dividend yield. This portfolio will give an index-similar return but will likely result in a higher dividend yield. The thesis is that because dividends are subject to 'double taxation' (i.e. taxed at company level, then shareholder level) the market will adjust pricing of stocks that pay higher dividends to compensate for that - thus if an investor can access this type of fund via a tax-sheltered investment account then they should be able to beat the index.
Synonyms: Dividend yield fund, Adjusted index weightings, Dividend weighted
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