AAM S&P Developed Markets High Dividend Value (DMDV)DMDV

ETF AAM S&P Developed Markets High Dividend Value

Profile:

The ETF AAM S&P Developed Markets High Dividend Value (SPDV) tracks the S&P Developed Markets High Dividend Value Index. This index comprises 100 large and mid-cap companies from developed markets, including the US, Canada, Japan, and Europe, that demonstrate high dividend yields and value characteristics. SPDV invests in various sectors, with the top allocations currently focused on Financials, Industrials, and Consumer Discretionary.

Objective:

The primary objective of SPDV is to provide its investors with a high level of current income through dividend payouts. Additionally, it seeks to offer long-term capital appreciation by investing in undervalued companies with high dividend-paying capacity.

Issuer:

• Asset Allocation Management Company (AAM): Founded in 2002, AAM is a global asset manager specializing in quantitative and systematic investment strategies. It has a solid reputation in the industry and oversees over $120 billion in assets.
• Management: AAM's experienced and dedicated investment team, led by Founder and CIO Dr. Andrew Dyson, manages SPDV. The team utilizes quantitative models and a disciplined investment approach.

Market Share:

SPDV holds a significant market share within the developed markets high dividend ETF category. It currently ranks among the top 5 in terms of assets under management within this segment.

Total Net Assets:

As of November 1st, 2023, SPDV's total net assets stood at approximately $3.5 billion.

Moat:

SPDV boasts several competitive advantages:

• Quantitative and Systematic Approach: AAM's unique investment approach utilizes quantitative models to identify high-yielding and undervalued stocks, potentially leading to superior performance.
• Experienced Management: The team's expertise and track record in managing high-dividend portfolios provide investors with confidence.
• Focused Investment Strategy: Targeting a specific niche market allows SPDV to offer investors differentiated exposure within the high-dividend ETF landscape.

Financial Performance:

• Historical Performance: Over the past 3 and 5 years, SPDV has delivered annualized returns of 8.5% and 6.5%, respectively, outperforming its benchmark index and generating attractive dividend yields.
• Benchmark Comparison: SPDV has consistently outperformed its benchmark index over various periods, demonstrating its ability to generate alpha through its unique investment approach.

Growth Trajectory:

The ETF's AUM has grown steadily over the past years, indicating increasing investor interest in its high-dividend and value-oriented strategy. This trend suggests potential for continued growth in the future.

Liquidity:

• Average Trading Volume: SPDV exhibits a healthy average daily trading volume, ensuring easy entry and exit for investors.
• Bid-Ask Spread: The ETF's tight bid-ask spread signifies low transaction costs, making it a cost-effective investment option.

Market Dynamics:

Several factors impact SPDV's market environment:

• Economic Growth: A positive economic outlook could benefit high-dividend-paying companies and potentially drive the ETF's performance.
• Interest Rates: Rising interest rates may make high-dividend-yielding stocks less attractive compared to fixed-income investments, potentially influencing the ETF's performance.
• Market Volatility: Increased market volatility could impact the ETF's price fluctuations and overall risk profile.

Competitors:

• iShares Select Dividend ETF (DVY): Market Share - 12%, AUM - $18 billion
• Vanguard High Dividend Yield ETF (VYM): Market Share - 10%, AUM - $15 billion
• Schwab U.S. Dividend Equity ETF (SCHD): Market Share - 8%, AUM - $12 billion

Expense Ratio:

SPDV's expense ratio is 0.30%, which is considered competitive within its category.

Investment Approach and Strategy:

• Strategy: SPDV aims to track the S&P Developed Markets High Dividend Value Index, offering investors exposure to a diversified portfolio of high-yielding and undervalued companies.
• Composition: The ETF primarily holds stocks of large and mid-cap companies across various developed market sectors.

Key Points:

• SPDV provides high current income through dividend payouts.
• It offers long-term capital appreciation potential by investing in undervalued companies.
• The ETF utilizes a quantitative and systematic investment approach.
• SPDV has a strong historical performance track record.
• It demonstrates competitive liquidity and expense ratios.

Risks:

• Volatility: SPDV's price can fluctuate due to market-related factors.
• Market Risk: The ETF's performance is tied to the performance of its underlying holdings.
• Dividend Risk: Dividend payments can be reduced or eliminated if the underlying companies face financial challenges.

Who Should Consider Investing:

SPDV is suitable for investors seeking:

• High current income through dividend payments.
• Long-term capital appreciation potential through exposure to undervalued stocks.
• Diversification within a portfolio of developed market equities.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of the factors discussed above, including financial health, market position, and future prospects, SPDV receives an overall fundamental rating of 8.5 out of 10. This rating reflects the