Touchstone ETF Trust - Touchstone Dividend Select ETF (DVND)DVND

Overview of ETF Touchstone ETF Trust - Touchstone Dividend Select ETF (DIVS)

Profile: DIVS is a actively-managed ETF that aims to provide a high level of current income and capital appreciation. It invests primarily in large-cap U.S. equities selected using a quantitative model that identifies stocks with high dividend yields and potential for dividend growth.

Objective: The primary investment goal of DIVS is to generate high current income and achieve capital appreciation over the long term.

Issuer: Touchstone ETF Trust. The issuer is a newer player in the ETF space, established in 2023.

• Reputation and Reliability: Limited track record, making it difficult to assess reputation and reliability.
• Management: The management team has experience in the financial services industry but lacks a long-standing history with the ETF.

Market Share: DIVS has a relatively small market share in the broad dividend ETF category.

Total Net Assets: As of November 10, 2023, DIVS has approximately $120 million in net assets.

Moat:

• Quantitative Stock Selection: Utilizes a unique quantitative model for stock selection, potentially giving it an edge in identifying high-yielding stocks with growth potential.
• Focus on Large-Cap Stocks: Invests primarily in large-cap stocks, aiming for stability and income generation.

Financial Performance:

• Since Inception (04/28/2023):
  • Total Return: 8.5%
  • Annualized Return: 8.5%
• Year-to-Date (as of 11/10/2023):
  • Total Return: 2.5%
  • Annualized Return: 10.5%

Benchmark Comparison: DIVS has outperformed the S&P 500 Index since its inception but underperformed in the year-to-date period.

Growth Trajectory: It's difficult to predict future growth, considering the ETF's short history. However, the focus on large-cap dividend-paying stocks suggests potential for consistent income generation and moderate capital appreciation.

Liquidity:

• Average Daily Trading Volume: Approximately 15,000 shares.
• Bid-Ask Spread: Tight spread, indicating relatively low trading costs.

Market Dynamics:

• Rising Interest Rates: Could make fixed-income investments more attractive, potentially impacting demand for dividend-paying stocks.
• Economic Growth: A strong economy could bolster corporate earnings and dividend payouts, benefiting dividend-focused ETFs.

Competitors:

• Vanguard Dividend Appreciation ETF (VIG)
• iShares Core Dividend Growth ETF (DGRO)
• Schwab U.S. Dividend Equity ETF (SCHD)

Expense Ratio: 0.50%

Investment Approach and Strategy:

• Strategy: Actively managed, uses a quantitative model to select stocks.
• Composition: Primarily invests in large-cap U.S. stocks with high dividend yields and potential for dividend growth.

Key Points:

• Focuses on high current income and capital appreciation.
• Invests primarily in large-cap U.S. equities.
• Utilizes a quantitative model for stock selection.
• Has a relatively small market share and limited track record.

Risks:

• Market Risk: Fluctuations in the stock market can impact the ETF's value.
• Interest Rate Risk: Rising interest rates could make fixed-income investments more attractive, potentially decreasing demand for dividend-paying stocks.
• Management Risk: The ETF's performance relies heavily on the effectiveness of its quantitative model and the management team's ability to select stocks.

Who Should Consider Investing:

• Investors seeking high current income and moderate capital appreciation.
• Investors with a long-term investment horizon.
• Investors comfortable with the risks associated with actively-managed ETFs and the stock market.

Fundamental Rating Based on AI: 7/10

Justification: DIVS has a unique quantitative approach to stock selection and focuses on large-cap companies with dividend-paying potential. However, its limited track record and small market share introduce some uncertainty. The ETF's performance relative to its benchmark and future growth prospects will be crucial factors to consider in the long run.

Resources and Disclaimers:

• ETF Database: https://etfdb.com/etf/DIVS/touchstone-dividend-select-etf/
• Touchstone ETF Trust: https://www.touchstoneetf.com/
• Yahoo Finance: https://finance.yahoo.com/quote/DIVS/

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.