SmartETFs Asia Pacific Dividend Builder ETF (ADIV)

Overview

The SmartETFs Asia Pacific Dividend Builder ETF (ADIV) seeks to provide investment results that, before fees and expenses, correspond to the performance of the INDXX Asia Pacific ex-Japan Dividend Builders Index. The fund invests in dividend-paying companies in the Asia Pacific region, excluding Japan, with a focus on dividend growth and sustainability.

Reputation and Reliability

SmartETFs is a relatively newer ETF provider known for its innovative and niche investment strategies. While not as established as larger firms, it has gained attention for its unique fund offerings.

Management Expertise

The management team consists of experienced professionals in investment management with expertise in ETF structuring and portfolio management, specializing in global dividend strategies.

Goal

The ETF aims to provide investors with current income and capital appreciation by investing in dividend-paying companies in the Asia Pacific region (ex-Japan) with a history of dividend growth.

Investment Approach and Strategy

Strategy: The ETF tracks the INDXX Asia Pacific ex-Japan Dividend Builders Index, a rules-based index that selects companies based on dividend yield, payout ratio, and dividend growth sustainability.

Composition The ETF primarily holds stocks of companies located in the Asia Pacific region (excluding Japan), emphasizing those with strong dividend-paying capabilities and a history of increasing dividends.

Market Share: ADIV has a relatively small market share compared to larger, more established Asia Pacific dividend ETFs.

Total Net Assets (AUM): 16670000

Key Competitors

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

Competitive Landscape

The Asia Pacific dividend ETF market is dominated by larger, more established players like Vanguard and iShares. ADIV offers a more focused approach on dividend growth sustainability, which may appeal to investors seeking quality dividend payers. However, it faces challenges in attracting assets due to its smaller size and brand recognition compared to its competitors.

Historical Performance: Historical performance data would be required for accurate presentation and review.

Benchmark Comparison: Benchmark comparison data would be required for accurate presentation and review.

Expense Ratio: 0.65

Average Trading Volume

ADIV's average trading volume is relatively low, which may impact the ease of buying or selling shares.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions, potentially increasing the cost of trading the ETF.

Market Environment Factors

Economic growth in the Asia Pacific region, interest rate policies, and geopolitical events can significantly influence the performance of ADIV. The performance of the financials and real estate sectors within the Asia Pacific region will also impact the ETF.

Growth Trajectory

The growth trajectory of ADIV depends on its ability to attract assets by demonstrating consistent performance and highlighting its unique investment strategy. The ETF may adjust its holdings periodically to reflect changes in the dividend-paying landscape of the Asia Pacific region.

Competitive Edge

ADIV's focus on dividend growth sustainability, rather than simply high dividend yield, provides a distinct advantage. The fund's rules-based index aims to identify companies with a proven track record of increasing dividends, suggesting financial stability and strong corporate governance. This focus on quality dividend payers may offer more sustainable long-term returns compared to ETFs that prioritize high yield alone. Its targeted investment strategy and robust index may lead to more consistent results, even during volatile market conditions.

Volatility

ADIV's volatility will depend on the volatility of the underlying Asia Pacific stock market and the specific holdings within the portfolio.

Market Risk

The primary risk is market risk associated with investing in the Asia Pacific equity markets, which can be affected by economic slowdowns, political instability, and currency fluctuations. Specific country risks within the Asia Pacific region also need to be considered, such as regulatory changes or political events.

Ideal Investor Profile

The ideal investor is a long-term investor seeking income and capital appreciation with a focus on dividend growth. Investors seeking diversification in the Asia Pacific region, excluding Japan, may find ADIV suitable.

Market Risk

ADIV is best suited for long-term investors seeking a dividend-focused approach to investing in the Asia Pacific region.

The SmartETFs Asia Pacific Dividend Builder ETF (ADIV) offers exposure to dividend-paying companies in the Asia Pacific region, excluding Japan, with a focus on dividend growth and sustainability. It tracks a rules-based index designed to select companies with a history of increasing dividends and strong financial characteristics. While ADIV offers a unique approach, it faces competition from larger, more established ETFs in the Asia Pacific market. Investors should consider its low trading volume and expense ratio when evaluating its suitability for their portfolio. The fund is more ideal for investors seeking long-term growth and dividend income.

Data Sources:

• SmartETFs Website
• INDXX
• ETF.com
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market conditions can change rapidly, and investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor.