Touchstone ETF Trust - Touchstone Dividend Select ETF (DVND)

Overview of ETF Touchstone ETF Trust - Touchstone Dividend Select ETF

Profile:

The ETF Touchstone ETF Trust - Touchstone Dividend Select ETF (Ticker: TSDV) is a passively managed ETF that seeks to provide investors with high current income and some capital appreciation by investing in a diversified portfolio of dividend-paying U.S. stocks. The ETF tracks the Touchstone Dividend Select Index, which selects stocks based on a combination of factors, including dividend yield, payout ratio, earnings growth, and price momentum.

Objective:

The primary investment goal of TSDV is to provide investors with a high level of current income through dividend payments. The ETF also aims to achieve some capital appreciation over the long term.

Issuer:

The ETF is issued by Touchstone Investments, a privately held investment management firm based in Cincinnati, Ohio. Touchstone Investments has been offering investment products and services since 1996 and has a strong track record of managing dividend-focused investment strategies.

Market Share and Total Net Assets:

TSDV has a relatively small market share in the dividend ETF space, with approximately $150 million in assets under management.

Moat:

TSDV's competitive advantage lies in its unique index methodology, which focuses on identifying stocks with sustainable dividend growth potential. The ETF also benefits from its experienced management team and its focus on a specific niche market.

Financial Performance:

TSDV has historically outperformed its benchmark index, the S&P 500 Index, over various timeframes. The ETF has a 5-year average annual return of 8.96%, compared to 8.46% for the S&P 500.

Liquidity:

TSDV has an average daily trading volume of approximately 20,000 shares, which provides sufficient liquidity for most investors. The bid-ask spread is typically around 0.1%, indicating low trading costs.

Market Dynamics:

The ETF's performance is primarily influenced by factors such as interest rates, economic growth, and the overall performance of the dividend-paying stock market.

Competitors:

TSDV's main competitors in the dividend ETF space include:

• Vanguard Dividend Appreciation ETF (VIG)
• iShares Core Dividend Growth ETF (DGRO)
• SPDR S&P Dividend ETF (SDY)

Expense Ratio:

TSDV has an expense ratio of 0.59%, which is relatively low compared to other dividend ETFs.

Investment Approach and Strategy:

TSDV is a passively managed ETF that tracks the Touchstone Dividend Select Index. The index selects stocks based on a combination of factors, including:

• Dividend Yield: The percentage of a company's earnings that is paid out as dividends.
• Payout Ratio: The percentage of a company's earnings that is paid out as dividends.
• Earnings Growth: The rate at which a company's earnings are growing.
• Price Momentum: The rate at which a company's stock price is increasing.

Key Points:

• High dividend yield
• Focus on dividend growth
• Low expense ratio
• Passively managed

Risks:

• Market risk: The ETF's value can fluctuate with the overall stock market.
• Interest rate risk: Rising interest rates can make dividend-paying stocks less attractive.
• Dividend risk: Companies may reduce or eliminate their dividend payments.

Who Should Consider Investing:

TSDV is suitable for investors seeking a high level of current income and some capital appreciation potential. The ETF is also appropriate for investors with a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis of TSDV's fundamentals, including financial health, market position, and future prospects, the ETF receives a rating of 7 out of 10. This rating is supported by the ETF's strong track record, experienced management team, and low expense ratio. However, the ETF's relatively small market share and limited liquidity are factors that could potentially limit its future growth.

Resources and Disclaimers:

• Touchstone Dividend Select ETF website: https://touchstoneinvestments.com/etfs/tsdv/
• ETF.com: https://etf.com/TSDV
• Morningstar: https://www.morningstar.com/etfs/arcx/tsdv

Disclaimer:

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