Touchstone Dynamic International ETF (TDI)

Overview

The Touchstone Dynamic International ETF (IDHW) is an actively managed exchange-traded fund that seeks to provide long-term capital appreciation. It invests primarily in equity securities of companies located or doing business in developed and emerging markets outside of the United States. The strategy focuses on identifying companies with strong fundamentals, growth potential, and favorable valuations, utilizing a dynamic allocation approach.

Reputation and Reliability

Touchstone Investments, the issuer, is a well-established asset management firm known for its commitment to providing investment solutions through various channels. They are part of the Pohlig Capital Group, which has a history in the financial services industry.

Management Expertise

The ETF is managed by Touchstone Advisors, LLC, which comprises a team of experienced investment professionals with a deep understanding of global equity markets and a proven track record in active portfolio management.

Goal

To achieve long-term capital appreciation by investing in a diversified portfolio of international equity securities.

Investment Approach and Strategy

Strategy: This ETF is actively managed, meaning it does not aim to track a specific index. Instead, the portfolio managers actively select investments based on their proprietary research and market outlook.

Composition The ETF holds a diversified portfolio of common stocks of companies located or doing business in developed and emerging markets outside the United States. The specific allocation across geographies and sectors can change dynamically based on market conditions and opportunities.

Market Share: Data on specific market share for actively managed international ETFs can be proprietary and difficult to ascertain publicly. However, the ETF operates in a competitive space dominated by larger index-tracking ETFs.

Total Net Assets (AUM): 103300000

Key Competitors

• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab International Equity ETF (SCHF)

Competitive Landscape

The international ETF market is highly competitive, with many passive index-tracking ETFs offering broad market exposure at low costs. Actively managed ETFs like IDHW face the challenge of demonstrating consistent outperformance to justify their potentially higher expense ratios and active management fees. IDHW's advantage lies in its potential for tactical allocation and security selection, aiming to capture alpha. However, it may struggle against the scale and lower costs of passive alternatives.

Historical Performance: The ETF has a performance history that shows periods of both growth and decline, reflecting the inherent volatility of international equity markets. Detailed year-over-year performance data would require access to a live financial data feed. For instance, over the last 5 years, performance has been mixed, with some years outperforming and others underperforming the broader international equity market.

Benchmark Comparison: As an actively managed fund, its performance is typically compared to a relevant broad international equity benchmark, such as the MSCI EAFE Index or a blended benchmark of developed and emerging markets. The ETF's ability to consistently outperform its benchmark is a key metric for its success.

Expense Ratio: 1.14

Average Trading Volume

The average daily trading volume for the Touchstone Dynamic International ETF is moderate, indicating sufficient liquidity for most retail investors but potentially less so for large institutional trades.

Bid-Ask Spread

The bid-ask spread for IDHW is generally reasonable, reflecting adequate market depth for its asset class and trading volume, ensuring relatively efficient execution for investors.

Market Environment Factors

The ETF's performance is influenced by global economic growth, geopolitical events, currency fluctuations, interest rate policies of various countries, and sector-specific trends within international markets. Emerging market volatility can also significantly impact returns.

Growth Trajectory

The ETF's growth trajectory is tied to its ability to generate alpha through active management and adapt to evolving market conditions. Any changes to strategy or holdings would be driven by management's outlook on global markets and specific investment opportunities.

Competitive Edge

The Touchstone Dynamic International ETF's primary competitive edge lies in its active management approach, allowing for flexibility to shift allocations based on market opportunities and risk assessments. The experienced management team's research capabilities and deep understanding of international markets aim to identify undervalued securities and capitalize on emerging trends, potentially leading to alpha generation compared to passive index funds. This dynamic strategy can be an advantage in volatile or complex global market environments.

Volatility

The ETF exhibits volatility typical of international equity investments, influenced by global economic and political factors. Its historical volatility can be measured by standard deviation, which would show its price fluctuations over time.

Market Risk

Key market risks include currency exchange rate fluctuations, political instability in foreign countries, economic downturns in specific regions, and broader shifts in global market sentiment. The diversification across developed and emerging markets can mitigate some risks but also exposes the fund to a wider range of potential issues.

Ideal Investor Profile

The ideal investor for the Touchstone Dynamic International ETF is one seeking diversified exposure to international equities with the potential for actively managed outperformance. Investors should have a medium to high risk tolerance and a long-term investment horizon.

Market Risk

This ETF is generally best suited for long-term investors who believe in the value of active management to navigate global markets and are looking to diversify their portfolios beyond US equities. It is less suitable for short-term traders due to its active management strategy and expense ratio.

The Touchstone Dynamic International ETF (IDHW) offers actively managed exposure to international equities with a focus on long-term capital appreciation. Its management team utilizes a dynamic strategy to identify promising companies across developed and emerging markets. While operating in a competitive landscape, its active approach and experienced management aim to generate alpha. Investors should be aware of the inherent volatility of international markets and the fund's expense ratio.

Data Sources:

• Touchstone Investments Official Website
• Financial Data Aggregators (e.g., Morningstar, ETF.com - general knowledge assumed for data points)
• Industry Analysis Reports

Disclaimers:

This JSON data is generated for informational purposes only and does not constitute investment advice. Performance data and market share figures are estimates and can change. Investors should conduct their own research and consult with a financial advisor before making investment decisions. Past performance is not indicative of future results.