Touchstone ETF Trust - Touchstone Dividend Select ETF (DVND)

Overview

The Touchstone Dividend Select ETF (DVND) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Blue Tractor Dividend Select Index. It focuses on dividend-paying stocks and aims to outperform the broad market through a selection process based on dividend yield and financial health.

Reputation and Reliability

Touchstone is an experienced asset manager with a focus on delivering innovative investment solutions. They are known for their disciplined approach and commitment to investor needs.

Management Expertise

The management team has extensive experience in portfolio management and dividend-focused strategies, bringing expertise in analyzing financial metrics and selecting dividend-paying stocks.

Goal

The ETF aims to generate income and capital appreciation by investing in dividend-paying stocks.

Investment Approach and Strategy

Strategy: The ETF tracks the Blue Tractor Dividend Select Index, which uses a rules-based approach to select dividend-paying stocks based on dividend yield and financial health metrics.

Composition The ETF primarily holds a portfolio of dividend-paying stocks across various sectors, focusing on companies with strong financial fundamentals and consistent dividend payouts.

Market Share: The ETF's market share within the dividend ETF segment is relatively small compared to larger, more established competitors.

Total Net Assets (AUM): 11485579.65

Key Competitors

• Schwab US Dividend Equity ETF (SCHD)
• Vanguard Dividend Appreciation ETF (VIG)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The dividend ETF market is highly competitive, dominated by large players like Schwab, Vanguard, and iShares. DVND differentiates itself through its selection methodology but faces challenges in gaining market share due to the established presence and lower expense ratios of its competitors. A significant advantage of competitors includes much higher AUM and liquidity than DVND.

Historical Performance: Historical performance data needs to be sourced from financial data providers. (Requires specific historical data)

Benchmark Comparison: Benchmark comparison requires specific data and needs to be sourced from financial data providers. (Requires specific benchmark data)

Expense Ratio: 0.35

Average Trading Volume

The ETF's average trading volume is relatively low, which can impact ease of trading.

Bid-Ask Spread

The bid-ask spread can be wider due to lower trading volume, potentially increasing transaction costs.

Market Environment Factors

Economic indicators such as interest rates and inflation, sector performance, and investor sentiment towards dividend-paying stocks all influence the ETF's performance.

Growth Trajectory

The growth trajectory depends on its ability to attract assets, which is tied to its performance relative to its peers and its marketing efforts. Changes to strategy and holdings would be outlined in the ETF's prospectus and periodic reports.

Competitive Edge

DVND's competitive edge lies in its distinct dividend selection methodology based on financial health and dividend yield. This approach aims to identify high-quality dividend-paying stocks with sustainable payouts. However, the ETF's relatively small AUM and higher expense ratio compared to larger competitors may hinder its ability to attract investors. A more concentrated portfolio could also contribute to outperformance if its stock selection proves effective.

Volatility

Historical volatility data needs to be analyzed to assess the ETF's risk profile. Requires sourcing historical volatility data.

Market Risk

The ETF is subject to market risk associated with equity investments, including economic downturns, sector-specific risks, and company-specific risks related to the underlying holdings.

Ideal Investor Profile

The ideal investor for this ETF is someone seeking dividend income and moderate capital appreciation, comfortable with a rules-based approach to dividend stock selection.

Market Risk

The ETF may be suitable for long-term investors seeking a dividend-focused strategy, but it is less suitable for active traders due to its lower liquidity and potentially wider bid-ask spreads.

Touchstone Dividend Select ETF (DVND) offers exposure to dividend-paying stocks selected based on a rules-based approach incorporating financial health and yield. It faces stiff competition from larger, more established dividend ETFs with lower expense ratios and greater liquidity. Investors should carefully consider the ETF's selection methodology, expense ratio, and liquidity before investing. The ETF is best suited for long-term investors seeking dividend income and capital appreciation within a moderately risk-averse portfolio. Further analysis of historical performance is recommended prior to investment.

Data Sources:

• Touchstone Asset Management
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Market share estimates are approximate and may vary.