Timothy Plan High Dividend Stock ETF (TPHD)

Overview

The Timothy Plan High Dividend Stock ETF (TDIV) focuses on investing in high-dividend-paying stocks. Its strategy aims to generate income for investors while also seeking capital appreciation. The ETF typically invests in a diversified portfolio of U.S. equity securities, with a particular emphasis on companies that have a history of paying and increasing dividends.

Reputation and Reliability

Timothy Plan is an investment management firm known for its focus on socially responsible investing (SRI) principles, particularly within the Christian faith. They aim to offer investment solutions that align with ethical and moral values.

Management Expertise

The management team's expertise lies in identifying dividend-paying stocks that meet their SRI criteria. Their approach combines fundamental analysis with ethical screening to construct portfolios.

Goal

The primary investment goal of the ETF Timothy Plan High Dividend Stock ETF is to provide investors with a combination of current income through dividends and long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not explicitly track a specific benchmark index. Instead, it employs an actively managed strategy to select high-dividend-paying stocks that align with the Timothy Plan's investment philosophy and SRI criteria.

Composition The ETF primarily holds U.S. equity securities, specifically common stocks of companies that offer high dividend yields and are believed to have the potential for future dividend growth and capital appreciation. It may also hold cash and cash equivalents.

Market Share: Specific market share data for TDIV is not readily available without proprietary market intelligence tools. However, it operates within the broader dividend-focused ETF market.

Total Net Assets (AUM): 242290000

Key Competitors

• Vanguard High Dividend Yield ETF (VYM)
• Schwab U.S. Dividend Equity ETF (SCHD)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The high-dividend ETF landscape is highly competitive, dominated by large players with significant AUM and lower expense ratios. TDIV's competitive advantage lies in its unique SRI focus, appealing to a specific niche of ethically-minded investors. Its disadvantages include a smaller AUM and potentially higher expense ratio compared to major competitors, which can impact its liquidity and cost-effectiveness.

Historical Performance: TDIV has shown varied historical performance. Its performance is influenced by its dividend focus and SRI screening. Specific numerical data for multiple time periods is required for detailed graphical representation and is best obtained from financial data providers.

Benchmark Comparison: As an actively managed ETF, TDIV's performance is not directly tied to a single benchmark. It is typically compared against broad dividend-focused indices and its peer group. Its SRI overlay can lead to divergence from traditional dividend benchmarks.

Expense Ratio: 0.69

Average Trading Volume

The ETF's average trading volume is moderate, indicating a reasonable level of liquidity for most retail investors.

Bid-Ask Spread

The bid-ask spread for TDIV is generally competitive, reflecting its trading activity and market maker participation.

Market Environment Factors

TDIV is influenced by factors affecting the broader stock market, interest rate movements (which can impact dividend yields), and the performance of dividend-paying sectors. Economic growth prospects and corporate earnings also play a significant role. Its SRI screening adds an additional layer of consideration related to corporate governance and ethical practices.

Growth Trajectory

The ETF's growth trajectory is linked to investor demand for dividend income and ethical investment options. Any changes in strategy or holdings would be driven by ongoing research into dividend sustainability, company valuations, and adherence to SRI criteria.

Competitive Edge

TDIV's primary competitive edge is its specialized focus on combining high dividend yields with socially responsible investing principles, specifically aligned with Christian values. This niche appeal attracts a dedicated investor base seeking to align their financial goals with their ethical beliefs. The fund's active management approach also allows for discretionary selection of stocks that meet both financial and ethical criteria, potentially offering a unique portfolio composition.

Volatility

Historical volatility for TDIV is moderate, typical of equity-focused ETFs. Its dividend focus can sometimes offer a degree of downside protection during market downturns, but it is still subject to overall market fluctuations.

Market Risk

The ETF is exposed to market risk inherent in the equity markets, including fluctuations in stock prices, economic downturns, and sector-specific risks. Additionally, its SRI screening may lead to underperformance if certain highly-rated ethical companies experience significant declines or if exclusions limit diversification opportunities.

Ideal Investor Profile

The ideal investor for TDIV is one who seeks regular income from dividends, prioritizes long-term capital growth, and has a strong interest in investing according to socially responsible principles, particularly those aligned with Christian values.

Market Risk

TDIV is best suited for long-term investors who are looking for income generation and capital appreciation and are committed to investing in alignment with their ethical and religious beliefs.

The Timothy Plan High Dividend Stock ETF (TDIV) offers a unique blend of income generation through high-dividend stocks and adherence to socially responsible investing (SRI) principles. Its active management approach targets companies with strong dividend track records and ethical practices. While facing competition from larger, more established dividend ETFs, TDIV caters to a specific niche of ethically-minded investors. Its performance is subject to market dynamics and the effectiveness of its SRI screening.

Data Sources:

• Timothy Plan Website
• Financial Data Providers (e.g., Morningstar, ETF.com)

Disclaimers:

This information is for illustrative purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions.