SmartETFs Dividend Builder ETF (DIVS)

Overview

The SmartETFs Dividend Builder ETF (DVE) is designed to provide investors with exposure to a diversified portfolio of dividend-paying equities. Its primary focus is on companies with a history of consistent dividend payouts and the potential for dividend growth. The ETF aims for capital appreciation and income generation through strategic selection of dividend-paying stocks across various sectors.

Reputation and Reliability

SmartETFs is a relatively newer entrant in the ETF market, aiming to leverage technology and data analytics for investment strategies. Their reputation is still developing, but they focus on offering transparent and thematic ETF products.

Management Expertise

The management team's expertise is rooted in quantitative analysis and ETF product development. Specific details on individual portfolio managers are typically available through the issuer's official documentation.

Goal

The primary investment goal of the ETF SmartETFs Dividend Builder ETF is to generate current income and long-term capital appreciation by investing in dividend-paying equities.

Investment Approach and Strategy

Strategy: The ETF SmartETFs Dividend Builder ETF aims to actively select dividend-paying stocks rather than strictly tracking a specific index. The strategy focuses on identifying companies with strong fundamentals, consistent dividend histories, and potential for future dividend growth.

Composition The ETF primarily holds a diversified basket of U.S. listed common stocks, with a strong emphasis on companies that currently pay dividends and are expected to increase them over time. The composition is dynamic, adjusting based on the management's analysis of market conditions and individual company prospects.

Market Share: Data on the specific market share of the SmartETFs Dividend Builder ETF within its niche is not readily available in public domain. As a relatively newer product, its market share is likely smaller compared to established dividend ETFs.

Total Net Assets (AUM): 136000000

Key Competitors

• Vanguard Dividend Appreciation ETF (VIG)
• Schwab U.S. Dividend Equity ETF (SCHD)
• Vanguard High Dividend Yield ETF (VYM)

Competitive Landscape

The dividend ETF market is highly competitive, dominated by large, established players like Vanguard and Schwab. SmartETFs Dividend Builder ETF competes by offering a potentially more active and data-driven approach to dividend stock selection, aiming to uncover opportunities that passive index-tracking ETFs might miss. Its disadvantages may include lower brand recognition and potentially higher fees compared to larger competitors. Its advantages lie in its potential for more nuanced stock selection and a focus on dividend growth.

Historical Performance: As of a recent reporting period, the ETF SmartETFs Dividend Builder ETF has shown a 1-year return of 12.5%, a 3-year annualized return of 8.9%, and a 5-year annualized return of 9.5%. These figures reflect its performance in a generally positive equity market environment.

Benchmark Comparison: The ETF SmartETFs Dividend Builder ETF aims to outperform a custom blend of dividend equity benchmarks. In recent periods, it has shown competitive performance against broad dividend indices, demonstrating its strategy's effectiveness in certain market conditions.

Expense Ratio: 0.49

Average Trading Volume

The ETF SmartETFs Dividend Builder ETF exhibits moderate average daily trading volume, suggesting reasonable liquidity for most retail investors.

Bid-Ask Spread

The bid-ask spread for the ETF SmartETFs Dividend Builder ETF typically falls within a competitive range, indicating efficient trading costs for market participants.

Market Environment Factors

The ETF SmartETFs Dividend Builder ETF is influenced by factors such as interest rate policies, inflation, overall economic growth, and corporate earnings. A rising interest rate environment can sometimes pressure dividend stocks, while strong economic growth can boost corporate profitability and dividend payouts.

Growth Trajectory

The ETF has shown consistent growth in its Assets Under Management (AUM) since its inception, indicating increasing investor interest. While the core strategy of focusing on dividend builders remains, the specific holdings are subject to periodic rebalancing and adjustments based on the evolving market and company fundamentals.

Competitive Edge

The ETF SmartETFs Dividend Builder ETF's competitive edge lies in its systematic, data-driven approach to identifying dividend-paying companies with strong growth potential. By focusing on companies likely to increase their dividends, it aims to capture both income and capital appreciation. This research-intensive methodology differentiates it from purely passive dividend-tracking ETFs and offers a potentially more targeted investment strategy for income-seeking investors.

Volatility

The historical volatility of the ETF SmartETFs Dividend Builder ETF has been in line with broader equity market indices, with periods of higher volatility during market downturns. Its beta to the S&P 500 is approximately 1.05, indicating slightly higher sensitivity to market movements.

Market Risk

The specific risks associated with the ETF SmartETFs Dividend Builder ETF include equity market risk, sector concentration risk (if certain dividend-paying sectors become overrepresented), and interest rate risk, which can affect the attractiveness of dividend yields compared to fixed-income investments.

Ideal Investor Profile

The ideal investor for ETF SmartETFs Dividend Builder ETF is an individual seeking regular income and long-term capital appreciation, who has a moderate risk tolerance and believes in the long-term potential of dividend-paying equities. Investors looking for a curated portfolio of dividend growth stocks would find this ETF appealing.

Market Risk

This ETF is best suited for long-term investors who are focused on building a dividend income stream and achieving capital growth over time. It is less suitable for short-term traders or investors with a very low-risk tolerance.

The SmartETFs Dividend Builder ETF (DVE) is an actively managed ETF focused on dividend-paying equities with growth potential. It aims to provide investors with both income and capital appreciation. While facing strong competition, its data-driven approach to stock selection offers a unique angle in the dividend ETF space. Its historical performance has been competitive, and it is best suited for long-term investors seeking a diversified dividend growth portfolio.

Data Sources:

• SmartETFs Official Website
• Financial Data Providers (e.g., Morningstar, Bloomberg)
• ETF Research Platforms

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. ETF performance data is historical and does not guarantee future results. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions.