Franklin U.S. Core Dividend Tilt Index ETF (UDIV)

Overview

The Franklin U.S. Core Dividend Tilt Index ETF (DIVZ) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Equity Dividend Select Index. It focuses on U.S. companies with a history of dividend payments, tilting towards those with higher dividend yields and strong financial health.

Reputation and Reliability

Franklin Templeton is a well-established global investment management firm with a long history and a strong reputation in the industry.

Management Expertise

Franklin Templeton has a team of experienced investment professionals managing its ETFs, leveraging their expertise in dividend-focused strategies.

Goal

To track the investment results of the LibertyQ U.S. Equity Dividend Select Index, providing exposure to U.S. companies with a history of dividend payments and a tilt towards higher dividend yields and strong financial health.

Investment Approach and Strategy

Strategy: The ETF tracks the LibertyQ U.S. Equity Dividend Select Index, a rules-based index that selects and weights U.S. companies based on dividend yield and other fundamental factors.

Composition The ETF primarily holds stocks of U.S. companies that pay dividends. The portfolio is diversified across various sectors, but generally overweights sectors with higher-yielding dividend stocks.

Market Share: DIVZ's market share is relatively small compared to larger, more established dividend ETFs.

Total Net Assets (AUM): 181000000

Key Competitors

• Vanguard Dividend Appreciation ETF (VIG)
• Schwab U.S. Dividend Equity ETF (SCHD)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The dividend ETF market is highly competitive. DIVZ aims to differentiate itself through its specific index methodology, which focuses on dividend yield and financial health. VIG focuses on dividend growth, SCHD focuses on financial ratios and consistent dividends, and DVY focuses on high dividend yields. DIVZ's relatively small size may limit its liquidity compared to larger competitors.

Historical Performance: Historical performance data needs to be requested externally. Returns depend on market conditions and underlying index performance.

Benchmark Comparison: Benchmark comparison should be done with the LibertyQ U.S. Equity Dividend Select Index.

Expense Ratio: 0.29

Average Trading Volume

DIVZ's average trading volume is moderate, which can affect the ease of buying and selling shares quickly at the desired price.

Bid-Ask Spread

The bid-ask spread for DIVZ is generally reasonable, but it can widen during periods of market volatility.

Market Environment Factors

Economic indicators, interest rate changes, and overall market sentiment can influence DIVZ's performance. Sector-specific factors also play a role, especially in sectors heavily represented in the index.

Growth Trajectory

DIVZ's growth depends on its ability to attract investors seeking dividend income and its ability to outperform its benchmark index.

Competitive Edge

DIVZ's competitive edge lies in its specific index methodology that combines dividend yield with financial health factors. This approach aims to provide a balance between income and stability. The ETF's relatively low expense ratio compared to some other dividend ETFs also attracts cost-conscious investors. However, it faces stiff competition from larger, more liquid dividend ETFs with established track records. Franklin Templeton's brand recognition can help attract investors.

Volatility

DIVZ's volatility is generally comparable to other dividend-focused ETFs, which tend to be less volatile than the broader market but can still be affected by market downturns.

Market Risk

The primary market risk is the potential for declines in the value of the underlying stocks held by the ETF. Changes in interest rates can also impact dividend yields and stock prices.

Ideal Investor Profile

The ideal investor for DIVZ is someone seeking dividend income and capital appreciation from U.S. equities. Investors who want some level of screening for dividend quality and financial health might find this ETF suitable.

Market Risk

DIVZ is suitable for long-term investors seeking a combination of income and growth. It can also be used as part of a diversified portfolio to add dividend exposure.

The Franklin U.S. Core Dividend Tilt Index ETF (DIVZ) seeks to track the LibertyQ U.S. Equity Dividend Select Index, offering exposure to U.S. dividend-paying companies with a focus on higher yields and strong financials. While it offers a competitive expense ratio and a differentiated index methodology, it faces strong competition from larger, more liquid ETFs in the dividend space. Its growth hinges on attracting income-seeking investors and demonstrating consistent performance relative to its benchmark. Investors should carefully consider its liquidity and trading volume compared to its competitors.

Data Sources:

• Franklin Templeton Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including the potential loss of principal.