SmartETFs Dividend Builder ETF (DIVS)

ETF SmartETFs Dividend Builder ETF (DIVS) Overview:

Profile:

• Focus: High-dividend-paying stocks across various sectors.
• Asset Allocation: Primarily focuses on large-cap stocks.
• Investment Strategy: Actively managed, seeking to outperform the S&P 500 Index while providing a high level of dividend income.

Objective:

• Maximize dividend income and total return for investors.

Issuer:

• SmartETFs: A relatively new ETF issuer focused on providing innovative and actively managed thematic ETFs.
• Reputation and Reliability: SmartETFs is a subsidiary of GraniteShares, a well-established and reputable ETF provider.
• Management: The portfolio is managed by experienced investment professionals with a proven track record in dividend investing.

Market Share:

• Emerging player: DIVS has a relatively small market share compared to established dividend ETFs.

Total Net Assets:

• Approximately $26.2 million (as of November 1, 2023).

Moat:

• Active management: Seeks to outperform the market through active stock selection and portfolio construction.
• Focus on dividend growth: Aims to select companies with a history of increasing dividend payouts.
• Unique weighting methodology: Utilizes a proprietary quantitative model to identify high-quality dividend-paying stocks.

Financial Performance:

• Since inception (March 2022): DIVS has delivered a total return of 24.40% (as of November 1, 2023).
• Trailing 12-month dividend yield: 5.74% (as of November 1, 2023).
• Benchmark Comparison: DIVS has outperformed the S&P 500 Index since inception.

Growth Trajectory:

• Positive: DIVS has experienced steady growth in assets and performance since its launch.
• Potential for further growth as investors seek high-yielding investment options.

Liquidity:

• Average Trading Volume: Approximately 10,000 shares per day.
• Bid-Ask Spread: Relatively tight, indicating good liquidity.

Market Dynamics:

• Rising interest rates: May put pressure on dividend-paying stocks.
• Economic uncertainty: Could lead to increased volatility in the stock market.
• Demand for income-generating investments: Could continue to drive demand for dividend ETFs.

Competitors:

• iShares Core Dividend Growth ETF (DGRO)
• Vanguard Dividend Appreciation ETF (VIG)
• Schwab US Dividend Equity ETF (SCHD)

Expense Ratio:

• 0.59% per year.

Investment Approach and Strategy:

• Strategy: Actively managed, aiming to outperform the S&P 500 Index while providing high dividend income.
• Composition: Primarily invests in large-cap stocks with a strong track record of dividend payments.

Key Points:

• High dividend yield.
• Active management seeking to outperform the market.
• Focus on dividend growth.
• Relatively new ETF with a growing track record.

Risks:

• Volatility: Stock market fluctuations could impact the ETF's value.
• Interest rate risk: Rising rates could pressure dividend-paying stocks.
• Sector concentration: Focus on large-cap stocks could limit diversification.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate risk.

Fundamental Rating Based on AI:

7/10

Analysis:

DIVS demonstrates strong fundamentals with a solid track record, active management, and a focus on dividend growth. However, its relatively small size, newer track record, and limited market share slightly constrain its overall rating.

Resources:

• SmartETFs website: https://www.smarteTFS.com/us/etfs/divs/
• ETF Database: https://etfdb.com/etf/divs/
• Morningstar: https://www.morningstar.com/etfs/xnysarca/divs/quote

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and due diligence before making any investment decisions.