Touchstone Dynamic International ETF (TDI)

Overview

The Touchstone Dynamic International ETF (NYSE Arca: TCHI) is an actively managed ETF focused on investing in a diversified portfolio of international equities, seeking long-term capital appreciation. It aims to outperform the MSCI EAFE Index by dynamically allocating assets based on market conditions and fundamental analysis.

Reputation and Reliability

Touchstone Investments has a solid reputation as an asset manager, known for its disciplined investment approach and focus on delivering long-term value to investors. The firm has a long track record of managing various investment strategies, including actively managed funds.

Management Expertise

The management team for TCHI possesses significant experience in international equities and actively managing investment portfolios. Their expertise allows for dynamic adjustments to the portfolio based on market conditions and fundamental research.

Goal

To seek long-term capital appreciation.

Investment Approach and Strategy

Strategy: Actively managed, employing a dynamic asset allocation strategy to invest in international equities. It does not track a specific index but aims to outperform the MSCI EAFE Index.

Composition Primarily invests in a diversified portfolio of international stocks, with the flexibility to adjust allocations based on market outlook and security selection.

Market Share: TCHI's market share is relatively small compared to larger, passively managed international equity ETFs.

Total Net Assets (AUM): 21790000

Key Competitors

• VEA
• VXUS
• IEFA
• ACWX

Competitive Landscape

The international equity ETF market is highly competitive, dominated by large, passively managed funds like VEA and VXUS. TCHI differentiates itself through active management, aiming to outperform the benchmark. Its smaller size can be an advantage in terms of flexibility, but it also faces challenges in terms of visibility and economies of scale compared to its larger competitors.

Historical Performance: Historical performance data should be consulted from reliable financial sources like Morningstar or ETF.com.

Benchmark Comparison: Benchmark comparison to the MSCI EAFE Index is essential to evaluate the effectiveness of TCHI's active management strategy.

Expense Ratio: 0.95

Average Trading Volume

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

Bid-Ask Spread

The bid-ask spread can be wider than larger, more liquid ETFs, potentially increasing trading costs.

Market Environment Factors

Economic growth in developed and emerging international markets, currency fluctuations, and geopolitical events can significantly impact TCHI's performance.

Growth Trajectory

TCHI's growth trajectory depends on its ability to consistently deliver superior returns compared to its benchmark and attract investor capital. Changes to strategy and holdings would be reflected in its quarterly holdings reports.

Competitive Edge

TCHI's primary advantage lies in its active management approach, allowing it to dynamically adjust its portfolio based on market conditions and fundamental research. The ETF's active management seeks to outperform passive benchmarks. Furthermore, the management team's expertise in international equities and disciplined investment process may contribute to its competitive edge. However, it's important to note that active management also carries the risk of underperformance.

Volatility

Historical volatility should be assessed relative to its benchmark and peer group. International equities are generally considered to be more volatile than domestic equities.

Market Risk

Market risk includes exposure to economic and political instability in international markets, currency fluctuations, and regulatory changes.

Ideal Investor Profile

TCHI is suitable for investors seeking long-term capital appreciation through international equities and who are comfortable with active management and potentially higher fees. It is suitable for investors who want international exposure and are willing to accept higher risk for potentially higher returns.

Market Risk

It is more suitable for long-term investors who believe in the potential of active management to generate alpha over the long run. This is also suitable for investors looking to add international diversification to their portfolio.

The Touchstone Dynamic International ETF offers exposure to international equities through an actively managed strategy. Its goal is to outperform the MSCI EAFE Index with a higher expense ratio than passive alternatives. The ETF is suitable for investors seeking capital appreciation and diversification but they need to be aware of the potential risks associated with active management and international markets. Ultimately, its success depends on the fund's ability to generate consistent outperformance relative to its benchmark. It's critical to carefully consider TCHI's fees, risks, and investment strategy before investing.

Data Sources:

• ETF.com
• Morningstar
• Touchstone Investments Website
• YCharts

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on your own research and consultation with a qualified financial advisor. Past performance is not indicative of future results.