Legg Mason Low Volatility High Dividend ETF (LVHD)

Overview

The Legg Mason Low Volatility High Dividend ETF (LVHD) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the QS Low Volatility High Dividend Index. It focuses on high-dividend-yielding U.S. companies with relatively lower volatility. The fund primarily invests in dividend-paying stocks and aims for capital appreciation alongside income generation.

Reputation and Reliability

Legg Mason, now part of Franklin Templeton, has a long history in asset management and is considered a reputable and reliable issuer.

Management Expertise

The management team has experience in quantitative analysis and dividend-focused investing.

Goal

To track the performance of the QS Low Volatility High Dividend Index, which selects stocks based on low volatility and high dividend yield.

Investment Approach and Strategy

Strategy: Tracks a specific index (QS Low Volatility High Dividend Index) focused on low volatility and high dividend yield.

Composition Primarily invests in dividend-paying stocks of U.S. companies.

Market Share: LVHD's market share is modest compared to larger dividend ETFs.

Total Net Assets (AUM): 1490000000

Key Competitors

• Schwab US Dividend Equity ETF (SCHD)
• Vanguard High Dividend Yield ETF (VYM)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The dividend ETF space is highly competitive, with several large players. LVHD distinguishes itself through its focus on both low volatility and high dividend yield. However, larger competitors have the advantages of lower expense ratios and greater liquidity.

Historical Performance: Historical performance varies with market conditions, but the fund generally aims to provide stable returns with dividend income.

Benchmark Comparison: The ETF's performance is generally compared to the QS Low Volatility High Dividend Index, but also to other broad dividend ETFs.

Expense Ratio: 0.27

Average Trading Volume

The average daily trading volume is moderate, affecting ease of entry and exit.

Bid-Ask Spread

The bid-ask spread is generally small, but can widen during periods of market volatility.

Market Environment Factors

Economic indicators like interest rates, inflation, and sector performance influence LVHD's performance.

Growth Trajectory

Growth depends on the performance of dividend-paying stocks with low volatility. There have been no significant changes to the holdings in recent times.

Competitive Edge

LVHD's combination of low volatility and high dividend yield offers a unique proposition for risk-averse investors seeking income. The QS Low Volatility High Dividend Index methodology is a key differentiator. The fund's focus on lower volatility can provide downside protection during market downturns. However, the low volatility filter may sacrifice total return during bull markets.

Volatility

Volatility is generally lower than broad market ETFs due to its screening process.

Market Risk

Market risk is present as the underlying assets are equities, which are subject to market fluctuations and sector-specific risks.

Ideal Investor Profile

LVHD is suited for income-seeking investors who prefer a relatively lower volatility investment. It is suitable for retirees or investors seeking a stable income stream.

Market Risk

LVHD is best for long-term investors who prioritize income generation and capital preservation over aggressive growth.

Legg Mason Low Volatility High Dividend ETF (LVHD) offers exposure to high-dividend-yielding stocks with relatively lower volatility, making it an attractive option for income-seeking investors. The ETF tracks the QS Low Volatility High Dividend Index and primarily invests in U.S. dividend-paying companies. The low-volatility screen differentiates it from other high-dividend ETFs, but the total assets are smaller than competitors. LVHD is ideal for long-term investors who prioritize income and capital preservation in a volatile market environment.

Data Sources:

• Franklin Templeton Website
• ETF.com
• Morningstar.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult a financial advisor before making any investment decisions.