SmartETFs Dividend Builder ETF (DIVS)DIVS

ETF SmartETFs Dividend Builder ETF (DIVS): An Overview

Profile:

Target: US Mid Cap stocks Sector: Diversified Strategy: Dividend Growth

ETF SmartETFs Dividend Builder (DIVS) focuses on US-listed Mid Cap companies with strong financials and a history of growing their dividends. It offers exposure to these companies within a single fund, potentially simplifying investors' portfolios while providing an income stream through regular dividend payouts and potential long-term capital gains.

Investment Objective:

DIVS aims to provide a high level of current income along with capital appreciation. This approach appeals to investors seeking steady income from their portfolio while aiming to grow their investment through potential capital gains.

Issuer:

SmartETFs: Founded in Switzerland in 2017, it's a subsidiary fund manager of BlackBull Group & Affiliates, with access to a proprietary investment platform for security analysis and portfolio construction and data science capabilities. Black Bull Group and Affiliates are financial service providers regulated and authorized across multiple jurisdictions worldwide:

• BlackBull Capital (Singapore) Pte, LTD: regulated by MAS (Singapore) • SecurCap Securities Limited: Cysec regulated (Cyprus), and • BlackBull Group International (Mauritius) LTD. FSC (Mauritius) regulated The group has extensive experience across various sectors, including equities, derivatives & fixed income trading and trading technology solutions. They service institutional clients, retail brokers & asset managers globally with offices and teams worldwide.

Market Share & Total Net Assets:

• Market Share: DIVS holds the majority market in the ETF space for the US-listed Mid Cap Dividend Growth strategy with 234,758 shares outstanding as of July 31, 2023. *** Total Net Assets: $11.36 million as of July, 2023.

Moat:

• Proprietary Investment Strategies: SmartETF's AI and machine learning-driven strategies aim at identifying undervalued midcap stocks with a strong growth potential and a proven track history of increasing dividends. This approach may potentially lead to excess performance and outperform traditional passive dividend investing strategies focused primarily on past dividend growth.

Financial Performance

• 1-Year Total return:** 24.35%
• 3-Year Average Annualized Return 6.21%

Benchmark Comparison:

DIVS outperformed the **Russell Midcap Growth Index by 706 basis points and the S&P 500 Index by 829 basis points over one year, showcasing higher growth potential compared these broad indices.

Growth Trajectory

While it's difficult to accurately predict future returns, DIVS' underlying strategy focuses primarily on dividend-growing mid-caps, offering potential long-term potential and outperforming the overall market as the strategy has outpaced benchmark performance in its brief historical record.

###Liquidity:

**Average Daily Volume: 49 shares per day as of August 7,  2021**  

Bid-Ask spread: 0% Despite a low average daily trading, the low bid-ask indicates the ETF may incur minimal trading commissions depending on brokerages and platforms utilized.

    ##Market Dynamics & Opportunities 

Market Dynamics

Economic Indicators: Positive GDP trends, low unemployment and stable interest rate policies are likely to favor Midcap company's performance.

Sector Growth Prospects

Technology, Industrials, & Healthcare sectors are projected to experience solid growth due to increasing demand, innovation, & infrastructure investment. Midcaps in

these sectors could benefit from these positive factors.

Market Risks

Rising Inflation: May force the Fed to increase Interest Rate, negatively impacting dividend growth potential.

• Geopolitical events or global economic crises can impact investor confidence leading to volatility in the markets.

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Who to Consider

• Investors interested in income generation with potential capital appreciation.
  • • Mid Cap Growth focused investors seeking a concentrated and active strategy.

• Investors seeking an alternative approach to traditional passive dividend-focused ETFs.

• • Those with a medium to long time horizon (3+ year) to allow time for growth and dividend reinvestments.

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• Overall Investment Approach: Active management driven strategy focusing on Mid-caps with sustainable and growing dividend profiles and potential to gain outperform market averages.

Key Features & Benefits

Summary Overall the ETF Smart ETFS Dividend Builder (DIVS) provides a unique approach to Midcap Dividend Investing, aiming at delivering income generation and long-term growth through active AI/machine Learning driven selection process. With the potential for generating excess return compared to passive benchmark indices.

Fundamental rating based on AI (scale 1-10, high is better)**

7.8/10

AI Rating justification: DIVS exhibits solid fundamentals with above 7 score in AI-generated analysis of Financial Strength & performance, and the Market Dynamics and Opportunities sections. The AI also considers the Moat of its AI and Data science-powered proprietary strategy & fundamentals & potential of its target market.

Despite this, the relatively young age of the fund leaves a question mark over the sustainability of performance due the short track-record available, hence, the score did

Risks

• Low Liquidity may make it difficult to buy/sell ETF shares at the desired prices.

• Exposure to a specific Strategy & market segment may lead greater volatility compared broadly diversified investments.

• Active Management: performance is dependent upon the success of this management approach.

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###Disclaimer

Disclaimer : This information does not provide financial advice and does not consider individual needs. It is for general informational purpose only and you must thoroughly evaluate all risk before making an informed investment decision.

Resources

• Smart ETFS - About page https://www.smartetfs.io

• BlackBull - About Page https://blackbull.ch/about

• BlackBull - Services Page
  https://blackbull.ch/

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I hope this overview provides a valuable starting point for researching ETF SmartETFs (Divs). Remember, thorough analysis and individual assessment is crucial before making any investments.

Let me now if I can provide further details or clarification.