Franklin International Core Dividend Tilt Index ETF (DIVI)DIVI

Franklin International Core Dividend Tilt Index ETF (FDDI)

Profile:

FDDI is an exchange-traded fund (ETF) that invests in international developed market equities with a focus on companies with high dividend yields. It tracks the Solactive International Core Dividend Tilt Index, which selects stocks based on factors such as dividend yield, profitability, and financial strength. The ETF's asset allocation is approximately 90% equities and 10% cash.

Objective:

FDDI aims to provide investors with exposure to international developed market stocks with a high dividend yield potential. The ETF seeks to generate income through dividends and capital appreciation over the long term.

Issuer:

Franklin Templeton Investments

• Reputation and Reliability: Franklin Templeton is a global asset management firm with over 75 years of experience and a strong reputation for investment expertise.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in international equities and dividend investing.

Market Share:

FDDI has a market share of approximately 0.5% in the international dividend ETF category.

Total Net Assets:

The ETF has approximately $1.2 billion in assets under management.

Moat:

• Dividend Focus: FDDI's focus on high-dividend-yielding stocks provides investors with a potential income stream.
• Global Diversification: The ETF invests in a diversified portfolio of international stocks, reducing single-country risk.
• Experienced Management: Franklin Templeton's expertise in international equity management adds value to the ETF.

Financial Performance:

Since its inception in 2014, FDDI has delivered a total return of 32.8%. This compares favorably to the Solactive International Core Dividend Tilt Index's return of 30.7% over the same period.

Growth Trajectory:

The demand for dividend-paying stocks is expected to remain strong, which could support FDDI's future growth. However, the ETF's performance is dependent on the underlying market conditions and the performance of the companies it invests in.

Liquidity:

• Average Trading Volume: FDDI has an average trading volume of approximately 24,000 shares per day.
• Bid-Ask Spread: The typical bid-ask spread for FDDI is around 0.05%, indicating high liquidity.

Market Dynamics:

• Economic Growth: Global economic growth can positively impact the performance of international stocks and, consequently, FDDI.
• Interest Rates: Rising interest rates can make dividend-paying stocks less attractive, potentially impacting the ETF's performance.
• Currency Fluctuations: FDDI is exposed to currency fluctuations, which can impact its returns.

Competitors:

• iShares International Select Dividend ETF (IDV): Market share - 40%
• Vanguard International Dividend Appreciation ETF (VYMI): Market share - 25%
• SPDR S&P International Dividend ETF (DWX): Market share - 10%

Expense Ratio:

FDDI has an expense ratio of 0.32%.

Investment Approach and Strategy:

• Strategy: The ETF tracks the Solactive International Core Dividend Tilt Index, seeking to replicate its performance.
• Composition: The ETF primarily invests in international developed market stocks with high dividend yields.

Key Points:

• Focus on high-dividend-yielding international stocks.
• Diversified global exposure.
• Experienced management team.
• Competitive expense ratio.

Risks:

• Market Risk: The ETF's performance is tied to the performance of the underlying international stock market, which can be volatile.
• Dividend Risk: The level of dividends paid by the ETF's holdings can fluctuate depending on company performance and market conditions.
• Currency Risk: FDDI is exposed to currency fluctuations, which can impact its returns.

Who Should Consider Investing:

• Investors seeking income-generating investments.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate volatility.

Fundamental Rating Based on AI (1-10):

7.5

FDDI scores well in terms of its financial performance, experienced management team, and focus on dividend-paying stocks. However, its relatively small market share and exposure to market risks are potential drawbacks.

Resources:

• Franklin Templeton Investments: https://www.franklintempleton.com/us/investor/products/etfs/overview?symbol=FDDI
• Solactive Index: https://www.solactive.com/indices/?symbol=SDAXI0D
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/fddi

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.