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 U.S. Core Dividend Tilt Index. The fund focuses on large- and mid-cap U.S. equities with a dividend tilt, aiming for income and long-term capital appreciation.

Reputation and Reliability

Franklin Templeton is a well-established global investment management firm with a long history and a solid reputation.

Management Expertise

Franklin Templeton has experienced portfolio managers and research analysts dedicated to managing its ETFs and other investment products.

Goal

To provide investment results that closely correspond, before fees and expenses, to the performance of the U.S. Core Dividend Tilt Index.

Investment Approach and Strategy

Strategy: The ETF tracks the U.S. Core Dividend Tilt Index, which selects and weights securities to provide a tilt towards dividend-paying companies.

Composition The ETF primarily holds stocks of large- and mid-cap U.S. companies with a focus on dividend-paying equities.

Market Share: DIVZ has a relatively small market share compared to its larger competitors in the dividend ETF space.

Total Net Assets (AUM): 195000000

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 differentiates itself through its specific dividend tilt methodology, which may appeal to investors seeking a particular dividend profile. However, its smaller AUM and relatively shorter track record may be disadvantages compared to larger, more established competitors like VIG and SCHD.

Historical Performance: Historical performance data is available on the fund's factsheet and other financial websites.

Benchmark Comparison: The ETF's performance can be compared to the U.S. Core Dividend Tilt Index to assess its tracking efficiency.

Expense Ratio: 0.19

Average Trading Volume

The ETF's average trading volume is moderate, which could impact the ease of buying and selling shares, particularly for large orders.

Bid-Ask Spread

The bid-ask spread is generally tight, but can widen during periods of market volatility.

Market Environment Factors

Economic growth, interest rate policies, and sector-specific trends influence the performance of dividend-paying stocks and, consequently, DIVZ.

Growth Trajectory

DIVZ's growth trajectory depends on its ability to attract assets and maintain competitive performance relative to its benchmark and peers. Changes in the underlying index methodology could also impact its growth.

Competitive Edge

DIVZ's competitive edge lies in its specific dividend tilt methodology, which may offer a different risk-return profile compared to broad-based dividend ETFs. It provides a targeted approach to dividend investing, potentially appealing to investors seeking a specific income stream or dividend growth strategy. The lower expense ratio is also a potential advantage compared to similar ETFs. However, this ETF will need to build a longer track record to attract the kind of investment dollars of VIG or SCHD.

Volatility

DIVZ's volatility is generally moderate, reflecting the volatility of its underlying dividend-paying stocks.

Market Risk

The ETF is subject to market risk, which includes the potential for losses due to declines in the overall stock market or specific sectors.

Ideal Investor Profile

DIVZ is suitable for investors seeking a combination of income and long-term capital appreciation through dividend-paying U.S. equities.

Market Risk

DIVZ is suitable for long-term investors who want exposure to dividend-paying stocks and are comfortable with moderate market risk.

The Franklin U.S. Core Dividend Tilt Index ETF (DIVZ) offers exposure to U.S. large- and mid-cap dividend-paying stocks with a specific dividend tilt methodology. It aims to track the performance of the U.S. Core Dividend Tilt Index, providing investors with a targeted approach to dividend investing. While it faces competition from larger, more established dividend ETFs, its specific tilt and relatively low expense ratio could appeal to certain investors. DIVZ is suitable for long-term investors seeking income and capital appreciation, but investors should carefully consider its risk profile and liquidity compared to alternatives.

Data Sources:

• Franklin Templeton Website
• ETF.com
• Morningstar

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. Consult with a qualified financial advisor before making any investment decisions.