Franklin International Core Dividend Tilt Index ETF (DIVI)

Franklin International Core Dividend Tilt Index ETF (FDVV)

Profile: FDVV is an ETF that seeks to provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Franklin International Core Dividend Tilt Index (the “Index”). The Index is designed to reflect the performance of large-cap and mid-cap companies in developed markets outside of the United States that pay dividends.

Objective: The primary investment goal of FDVV is to provide current income in the form of dividends. The ETF achieves this objective by investing in a diversified portfolio of international stocks with a focus on companies that have a history of paying dividends.

Issuer: FDVV is issued by Franklin Templeton Investments, a global investment management firm with over 75 years of experience. Franklin Templeton has a strong reputation and track record, with over $1.5 trillion in assets under management.

Market Share: FDVV has a market share of approximately 0.5% in the International Dividend ETF category.

Total Net Assets: As of November 2023, FDVV has approximately $250 million in total net assets.

Moat: FDVV's competitive advantages include its:

• Focus on dividend-paying stocks: This provides investors with a reliable source of income.
• Global diversification: The ETF invests in companies from various developed markets, reducing country-specific risk.
• Low expense ratio: The ETF has an expense ratio of 0.35%, which is lower than the average for its category.

Financial Performance: FDVV has generated an average annual return of 8.5% since its inception in 2016. This performance compares favorably to its benchmark, the MSCI EAFE Index, which has returned an average of 7.2% over the same period.

Growth Trajectory: The global dividend market is expected to grow steadily in the coming years, driven by increasing demand for income-generating investments. This bodes well for the future growth of FDVV.

Liquidity: FDVV has an average daily trading volume of around 20,000 shares, making it a relatively liquid ETF. The bid-ask spread is also tight, indicating that investors can buy and sell the ETF at a fair price.

Market Dynamics: Factors affecting FDVV's market environment include:

• Global economic growth: A strong global economy leads to increased corporate profits and dividend payouts.
• Interest rates: Rising interest rates can make dividend-paying stocks less attractive to investors, potentially impacting the ETF's performance.
• Market volatility: Increased market volatility can lead to higher price fluctuations for the ETF.

Competitors: Key competitors of FDVV include:

• iShares International Dividend Achievers ETF (IDV)
• Vanguard International Dividend Appreciation ETF (VIG)
• SPDR S&P International Dividend ETF (DWX)

Expense Ratio: The expense ratio for FDVV is 0.35%.

Investment Approach and Strategy: FDVV tracks the Franklin International Core Dividend Tilt Index, which selects companies based on a combination of factors, including:

• Dividend yield: The ETF invests in companies with high dividend yields.
• Dividend growth history: The ETF also considers companies with a history of increasing their dividend payments.
• Financial strength: The ETF invests in companies with strong financials and a track record of profitability.

Key Points:

• Provides income in the form of dividends.
• Invests in a diversified portfolio of international stocks.
• Has a low expense ratio.
• Has a strong track record of performance.

Risks: The main risks associated with FDVV include:

• Market risk: The ETF's value can fluctuate with the overall stock market.
• Interest rate risk: Rising interest rates can make dividend-paying stocks less attractive to investors.
• Currency risk: The ETF invests in international stocks, which are subject to currency risk.
• Dividend risk: The amount of dividends paid by the companies in the ETF can vary.
• Concentration risk: The ETF invests a significant portion of its assets in the financial sector.

Who Should Consider Investing:

• Investors seeking income in the form of dividends.
• Investors who want to diversify their portfolios internationally.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

8/10

FDVV has strong fundamentals, with a diversified portfolio of dividend-paying stocks, a low expense ratio, and a strong track record of performance. However, it is important to consider the risks associated with the ETF before investing.

Resources and Disclaimers:

• Franklin Templeton Investments: https://www.franklintempleton.com/investor/products/etfs/overview?symbol=FDVV
• Morningstar: https://www.morningstar.com/etfs/arcx/fdvv/quote
• ETF.com: https://etf.com/etf-profile/FDVV

Disclaimer:

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