Franklin International Core Dividend Tilt Index ETF (DIVI)

Franklin International Core Dividend Tilt Index ETF (FDIV)

Profile:

Franklin International Core Dividend Tilt Index ETF (FDIV) is a passively managed exchange-traded fund that tracks the NASDAQ International Core Dividend Tilt Index. This index focuses on high-dividend-paying stocks from developed markets outside the United States. FDIV invests primarily in large and mid-cap companies across various sectors, including financials, energy, and consumer staples.

Objective:

The primary investment goal of FDIV is to provide exposure to an international portfolio of high-dividend-paying stocks. The fund seeks to achieve long-term capital appreciation and income generation through dividend payments.

Issuer:

Franklin Templeton Investments

Reputation and Reliability:

Franklin Templeton Investments is a global asset management firm with over 75 years of experience and a strong reputation for its investment expertise. The firm manages over $1.5 trillion in assets across various investment strategies.

Management:

FDIV is managed by a team of experienced portfolio managers at Franklin Templeton Investments. The team has a deep understanding of international markets and a proven track record of managing dividend-focused strategies.

Market Share:

FDIV has a market share of approximately 0.8% in the international dividend ETF category.

Total Net Assets:

As of November 7, 2023, FDIV has approximately $1.37 billion in total net assets.

Moat:

FDIV's competitive advantages include:

• Low-cost structure: The fund has an expense ratio of 0.25%, making it one of the most affordable international dividend ETFs available.
• Experienced management team: The portfolio is managed by a team of experienced professionals with a proven track record in international investing.
• Diversification: The fund invests in a broad range of international companies, reducing risks associated with individual stock performance.

Financial Performance:

Since its inception in 2011, FDIV has delivered a total return of over 100%. The fund has consistently outperformed its benchmark index, NASDAQ International Core Index, over the same period.

Benchmark Comparison:

FDIV has outperformed its benchmark index, NASDAQ International Core Index, by an average of 1.5% per year since its inception.

Growth Trajectory:

The global dividend market is expected to grow steadily in the coming years, driven by factors such as population aging and increasing demand for income-generating investments. This growth trend bodes well for FDIV's future prospects.

Liquidity:

FDIV has an average daily trading volume of over 200,000 shares, making it a highly liquid ETF. The fund also has a tight bid-ask spread, indicating low trading costs.

Market Dynamics:

The international dividend market is affected by various factors, including global economic growth, interest rates, and currency fluctuations. Investors should be aware of these factors and their potential impact on the fund's performance.

Competitors:

Key competitors of FDIV include:

• iShares International Dividend Growth ETF (IGDV)
• Vanguard International High Dividend Yield ETF (VYMI)
• SPDR S&P International Dividend ETF (DWX)

Expense Ratio:

FDIV has an expense ratio of 0.25%.

Investment Approach and Strategy:

FDIV is a passively managed ETF that tracks the NASDAQ International Core Dividend Tilt Index. The index selects stocks based on their dividend yield, subject to certain market capitalization and liquidity criteria.

Composition:

FDIV primarily invests in stocks of large and mid-cap companies from developed markets outside the United States. The top sectors in the fund's portfolio include financials, energy, and consumer staples.

Key Points:

• Invests in high-dividend-paying stocks from developed markets outside the U.S.
• Low-cost structure
• Experienced management team
• Diversification
• Outperformed benchmark index
• High liquidity

Risks:

• Market risk: The value of the fund's holdings can fluctuate due to market conditions.
• Dividend risk: Dividends are not guaranteed and may be reduced or eliminated.
• Currency risk: The fund's value can be affected by changes in foreign currency exchange rates.

Who Should Consider Investing:

FDIV is suitable for investors seeking:

• Income generation through dividend payments
• Exposure to international markets
• Diversification in their portfolio

Fundamental Rating Based on AI:

Based on an AI-based analysis of FDIV's financial health, market position, and future prospects, the fund receives a 7.5 out of 10 rating. The analysis considers factors such as the fund's performance, expense ratio, portfolio diversification, and management team experience.

Resources and Disclaimers:

• Information for this analysis was gathered from the Franklin Templeton website and ETF.com.
• This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.