Listed Funds Trust - TrueShares Low Volatility Equity Income ETF (DIVZ)

Overview

The TrueShares Low Volatility Equity Income ETF (DIVI) seeks to provide current income and long-term capital appreciation by investing in a diversified portfolio of U.S. companies with low volatility and high dividend yields. The fund focuses on equity income strategies and seeks to outperform traditional dividend ETFs by minimizing downside risk.

Reputation and Reliability

TrueShares ETFs are relatively new to the market compared to established issuers. Their reputation is still developing, but they focus on offering innovative strategies.

Management Expertise

The management team possesses experience in quantitative investing and risk management, crucial for managing low-volatility strategies.

Goal

To provide current income and long-term capital appreciation while maintaining lower volatility than the broader market.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but uses a proprietary quantitative methodology to select and weight securities based on volatility and dividend yield.

Composition The ETF primarily holds U.S. common stocks with high dividend yields and low volatility characteristics. Sector diversification is also considered.

Market Share: Market share is relatively small compared to larger, more established dividend ETFs.

Total Net Assets (AUM): 146400000

Key Competitors

• SCHD
• DVY
• VIG
• SPYD

Competitive Landscape

The ETF industry for dividend and low-volatility strategies is competitive, with several well-established players. DIVI differentiates itself with its proprietary selection methodology focusing on both low volatility and high dividend yield. However, it faces the challenge of gaining market share against funds with significantly larger AUM and brand recognition.

Historical Performance: Historical performance data should be reviewed to assess returns, volatility, and risk-adjusted performance over various periods.

Benchmark Comparison: Comparing DIVI's performance to a broad market index like the S&P 500 and other dividend ETFs helps gauge its effectiveness in achieving its investment objective.

Expense Ratio: 0.35

Average Trading Volume

Average trading volume reflects moderate liquidity, which is adequate for most retail investors but may pose challenges for larger institutional traders.

Bid-Ask Spread

The bid-ask spread should be monitored to assess transaction costs; a narrower spread indicates higher liquidity and lower trading costs.

Market Environment Factors

Economic conditions, interest rate movements, and sector performance influence DIVI. Rising interest rates may negatively affect dividend stocks.

Growth Trajectory

The growth trajectory of DIVI depends on its ability to attract assets by demonstrating consistent performance and effectively marketing its unique strategy.

Competitive Edge

DIVI differentiates itself through its quantitative methodology that combines low volatility and high dividend yield, potentially offering a more balanced risk-return profile than traditional dividend ETFs. This approach seeks to minimize downside risk during market downturns while still providing income. The fund's strategy provides a distinct advantage during volatile market environments. It benefits investors seeking lower volatility and steady income, offering a compelling alternative to passive dividend index funds.

Volatility

DIVI's historical volatility should be compared to its benchmark and peers to assess its effectiveness in achieving low volatility.

Market Risk

Market risk includes the potential for declines in the overall stock market and the specific risks associated with the sectors in which DIVI invests. Changes in dividend policies or economic downturns can impact income.

Ideal Investor Profile

DIVI is suitable for investors seeking current income, long-term capital appreciation, and lower volatility than the broader market. This includes retirees, income-oriented investors, and those seeking to reduce portfolio risk.

Market Risk

DIVI is best suited for long-term investors seeking a combination of income and capital appreciation with a focus on risk management.

The TrueShares Low Volatility Equity Income ETF (DIVI) offers a unique approach to dividend investing by prioritizing both low volatility and high dividend yield. It is best suited for long-term investors seeking current income and capital appreciation with lower risk. The fund's proprietary quantitative methodology aims to outperform traditional dividend ETFs, but it faces stiff competition from larger, more established players in the market. Investors should carefully consider its historical performance, expense ratio, and liquidity before investing.

Data Sources:

• TrueShares ETFs website
• FactSet
• Morningstar
• YCharts

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.