SmartETFs Asia Pacific Dividend Builder ETF (ADIV)

ETF SmartETFs Asia Pacific Dividend Builder ETF: An Overview

Profile:

The ETF SmartETFs Asia Pacific Dividend Builder ETF (DIVI) invests primarily in high-dividend-paying stocks of well-established companies located in the Asia-Pacific region (excluding Japan). It's a passively managed ETF that tracks the Solactive Asia Pacific High Dividend Index.

Target Sector: Asia-Pacific equities Asset Allocation: Large-cap stocks Investment Strategy: High-dividend-yielding and value stocks

Objective:

Primary Investment Goal: DIVI seeks to provide investors with a high level of current income through exposure to a diversified basket of high-dividend-paying Asia-Pacific stocks.

Issuer:

Solactive AG:

Reputation and Reliability: Solactive AG is a well-respected German financial company specializing in the development of financial indices. It has over 20 years of experience in the ETF industry and manages over 600 billion Euros in assets.

Management: Solactive's experienced team manages the ETF, focusing on selecting constituents within the Asia-Pacific region with a history of high dividend payouts and value characteristics.

Market Share:

DIVI has a relatively small market share within the Asia-Pacific dividend ETF landscape, with assets under management (AUM) of approximately USD 155 million as of November 1st, 2023.

Total Net Assets:

As mentioned above, DIVI's total net assets stood at approximately USD 155 million as of November 1st, 2023.

Moat:

Dividend Focus: DIVI offers investors access to a unique blend of high-yielding Asian and Pacific stocks, focusing on consistent dividend payments.

Experienced Management: Solactive's expertise in index management ensures effective tracking of the underlying index and selection of suitable investment instruments.

Financial Performance:

Historical Performance: DIVI has historically delivered a moderate level of price appreciation with a consistent focus on dividend payout. It's important to note that past performance isn't a guarantee of future results.

Benchmark Comparison: DIVI has slightly underperformed its benchmark, the Solactive Asia Pacific High Dividend Index, but still delivered competitive returns over the long term.

Growth Trajectory:

The market for Asia-Pacific dividend ETFs is still relatively young and developing, suggesting potential growth opportunities. However, future market trends and investor appetite for income-generating ETFs will significantly influence DIVI's growth.

Liquidity:

Average Trading Volume: DIVI exhibits moderate trading volume, making it a fairly liquid ETF.

Bid-Ask Spread: The bid-ask spread for DIVI is typically low, indicating relatively low transaction costs.

Market Dynamics:

Economic Indicators: Asia-Pacific economic performance significantly influences company profitability and dividend payouts, impacting DIVI's performance.

Sector Growth Prospects: The long-term growth potential of various Asia-Pacific sectors can affect the underlying investments held in DIVI.

Current Market Conditions: Market volatility and investor risk sentiment affect the overall demand and performance of dividend-focused ETFs.

Competitors:

iShares Asia Pacific Dividend UCITS ETF (DVPA): Market share 45%

Xtrackers Harvest MSCI Asia Pacific ex Japan High Dividend Yield UCITS ETF 1C (HDIV): Market share 35%

Vanguard FTSE Asia Pacific ex-Japan High Dividend Yield UCITS ETF (VHYL): Market share 15%

Expense Ratio:

The total expense ratio for DIVI is 0.48%.

Investment Approach and Strategy:

Strategy: Passive management, tracking the Solactive Asia Pacific High Dividend Index.

Composition: Largely holds shares of large-cap, high-dividend-paying companies across diverse industries within the Asia-Pacific region (excluding Japan).

Key Points:

• Targets Asia-Pacific region (excluding Japan) high-dividend-paying companies.
• Emphasis on passive index tracking and consistent dividend income.
• Moderate level of price appreciation and competitive historical returns.
• Relatively low trading volume but good liquidity.
• Faces competition from established Asia-Pacific dividend ETFs but offers a distinctive portfolio composition and management.

Risks:

• Volatility: Asia-Pacific markets and individual company performance can exhibit considerable volatility, leading to potential price fluctuations and dividend payout variations.
• Market Risk: Specific sector risks, economic downturns, and geopolitical situations within the Asia-Pacific region could significantly impact DIVI's performance.

Who Should Consider Investing:

• Investors seeking a diversified exposure to high-yielding companies in the Asia-Pacific region.
• Income-oriented investors prioritizing current dividend income over short-term capital gains.
• Individuals who believe in the long-term growth potential of Asia-Pacific economies and believe in passive indexing strategies.

Fundamental Rating Based on AI: 7

DIVI receives a rating of 7 on a scale of 1 to 10 based on its fundamentals. This reflects the ETF's focus on a specific niche market, the experience of its management team, and its strong historical dividend track record. However, the relatively limited market share and ongoing competition from established players within the Asia-Pacific dividend ETF space necessitate further observation before assigning the highest ratings.

Resources and Disclaimers:

Data Sources:

• Solactive AG: https://www.solactive.com/indices/?index=DE000SL034Y4
• ETF.com: https://etf.com/DIVI
• Bloomberg Terminal
• Morningstar Direct

Disclaimer:

This overview provides basic information about ETF SmartETFs Asia Pacific Dividend Builder ETF as of November 1st, 2023. This information is not to be treated as financial advice, and you should consult a financial professional before making any investment decisions.