SmartETFs Asia Pacific Dividend Builder ETF (ADIV)

Overview

The SmartETFs Asia Pacific Dividend Builder ETF (ADIV) seeks long-term capital appreciation and current income by investing in dividend-paying companies located in the Asia-Pacific region, excluding Japan. It focuses on companies with a history of dividend growth and financial strength.

Reputation and Reliability

SmartETFs is a relatively new ETF provider focused on offering differentiated investment strategies. Their reputation is building as they expand their ETF offerings.

Management Expertise

The management team consists of experienced professionals with expertise in investment management and ETF operations.

Goal

To seek long-term capital appreciation and current income.

Investment Approach and Strategy

Strategy: ADIV employs a dividend growth strategy, selecting companies with a history of increasing dividends and strong fundamentals.

Composition The ETF holds a portfolio of dividend-paying stocks primarily located in the Asia-Pacific region (excluding Japan).

Market Share: ADIV's market share within the Asia-Pacific dividend ETF landscape is relatively small, as it is a niche product.

Total Net Assets (AUM): 28200000

Key Competitors

• Vanguard FTSE Pacific ex Japan ETF (VPL)
• iShares MSCI Pacific ex-Japan ETF (EPP)
• SPDR Portfolio Developed World ex-US ETF (SPDW)

Competitive Landscape

The Asia-Pacific ex-Japan ETF market is dominated by large providers like Vanguard and iShares. ADIV's advantage lies in its dividend growth focus, which differentiates it from broader market ETFs. However, it faces challenges in gaining market share due to its smaller size and less established brand.

Historical Performance: Historical performance data should be obtained from official sources like Yahoo Finance or the fund's website.

Benchmark Comparison: Performance should be compared to the MSCI AC Pacific ex Japan Index or a similar benchmark to assess effectiveness.

Expense Ratio: 0.65

Average Trading Volume

The ETF's liquidity is relatively low, which may affect trade execution efficiency.

Bid-Ask Spread

Due to lower trading volume, the bid-ask spread may be wider compared to more liquid ETFs, increasing trading costs.

Market Environment Factors

Economic growth in the Asia-Pacific region, interest rate policies, and geopolitical events can impact the ETF's performance.

Growth Trajectory

The ETF's growth is dependent on its ability to attract investors seeking dividend income and capital appreciation in the Asia-Pacific region. Changes to strategy and holdings should be tracked to assess management's approach to evolving market conditions.

Competitive Edge

ADIV's competitive edge is its focused strategy on dividend growth companies in the Asia-Pacific region (ex-Japan). This distinguishes it from broader ETFs by targeting companies with strong financials and commitment to increasing shareholder value through dividends. The ETF's selection process may uncover hidden dividend opportunities by identifying companies that are primed for dividend increases, offering potential outperformance. The screening and focus on dividend growth provides a unique investment angle.

Volatility

Volatility should be assessed based on the ETF's historical price fluctuations. Emerging markets and dividend strategies can influence volatility.

Market Risk

Risks include economic slowdowns in the Asia-Pacific region, currency fluctuations, and company-specific risks associated with the underlying holdings. Sector concentration within certain Asia-Pacific economies also adds risk.

Ideal Investor Profile

The ideal investor is someone seeking dividend income and long-term capital appreciation, with a moderate to high risk tolerance due to the focus on Asia-Pacific markets.

Market Risk

The ETF is suitable for long-term investors seeking diversification and income generation, but may not be suitable for active traders due to lower liquidity.

The SmartETFs Asia Pacific Dividend Builder ETF offers targeted exposure to dividend-growing companies in the Asia-Pacific region (excluding Japan). It distinguishes itself with a dividend growth strategy compared to broad market ETFs, but faces liquidity challenges due to smaller AUM. Investors should assess their risk tolerance and investment goals before investing in this niche ETF. The ETF is ideal for long-term investors seeking to achieve dividend income and long-term capital appreciation through its unique investment strategies.

Data Sources:

• SmartETFs website
• Yahoo Finance
• ETF.com
• Bloomberg

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making any investment decisions. Market share data is approximate and based on available information.