RiverFront Dynamic US Dividend Advantage ETF (RFDA)

Overview

The RiverFront Dynamic US Dividend Advantage ETF (RFDA) seeks to provide investment results that correspond generally to the price and yield performance of the Dorsey Wright US Select Dividend Index. It invests in dividend-paying US equities, dynamically adjusting its holdings based on relative strength and momentum factors.

Reputation and Reliability

RiverFront Investment Group is a well-regarded investment advisory firm with a focus on tactical asset allocation and risk management.

Management Expertise

RiverFront's management team has extensive experience in managing quantitative and rules-based investment strategies.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dorsey Wright US Select Dividend Index.

Investment Approach and Strategy

Strategy: RFDA uses a rules-based, quantitative approach to select and weight dividend-paying US equities based on relative strength and momentum factors. The ETF dynamically adjusts its holdings.

Composition The ETF primarily holds dividend-paying stocks of U.S. companies.

Market Share: Market share data is not readily available for RFDA specifically.

Total Net Assets (AUM): 157500000

Key Competitors

• Vanguard Dividend Appreciation ETF (VIG)
• Schwab US Dividend Equity ETF (SCHD)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The dividend ETF market is highly competitive. RFDA distinguishes itself through its dynamic, rules-based approach. Competitors like VIG and SCHD offer more passive, index-tracking strategies, potentially leading to lower expense ratios, but also less flexibility in adapting to changing market conditions. RFDA's dynamic strategy may provide an advantage in certain market environments but could also result in higher turnover and transaction costs.

Historical Performance: Historical financial performance data needs to be sourced and formatted into an array.

Benchmark Comparison: Benchmark comparison requires historical performance data compared to the Dorsey Wright US Select Dividend Index.

Expense Ratio: 0.09

Average Trading Volume

RFDA's average trading volume is moderate, indicating sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, indicating relatively low transaction costs for trading the ETF.

Market Environment Factors

RFDA's performance is influenced by factors such as interest rates, economic growth, and the performance of dividend-paying stocks in the US market. Sector rotation and investor sentiment towards dividend strategies also play a role.

Growth Trajectory

RFDA's growth trajectory depends on its ability to attract assets through consistent performance and effective marketing of its dynamic dividend strategy. Changes to holdings are regular and aligned with the investment process.

Competitive Edge

RFDA's competitive advantage lies in its dynamic, rules-based approach to dividend investing, which differentiates it from passive dividend ETFs. The ETF's strategy allows it to adapt to changing market conditions by rebalancing its portfolio based on relative strength and momentum indicators. This dynamic approach potentially offers the opportunity to outperform traditional dividend strategies in certain market cycles. The expense ratio is very low at .09%

Volatility

RFDA's volatility is expected to be similar to that of other dividend-focused ETFs, reflecting the risk profile of dividend-paying stocks.

Market Risk

RFDA is subject to market risk, including the risk of declines in the value of its holdings due to economic downturns, industry-specific factors, or broad market sell-offs.

Ideal Investor Profile

RFDA is suitable for investors seeking income and capital appreciation through dividend-paying stocks. Investors who want a dynamic strategy to adjust their dividend exposure based on market conditions may find RFDA appealing.

Market Risk

RFDA is best suited for long-term investors who understand and accept the risks associated with a dynamic investment strategy and are comfortable with potentially higher turnover.

The RiverFront Dynamic US Dividend Advantage ETF (RFDA) is a dividend-focused ETF that employs a dynamic, rules-based approach. It seeks to outperform traditional dividend strategies by adapting to changing market conditions through relative strength and momentum factors. While its dynamic strategy may offer potential advantages, it also entails higher turnover. RFDA is suitable for long-term investors seeking dividend income and capital appreciation and who understand that the active strategy is not guaranteed to produce better returns than passive index funds. The expense ratio is only .09% making this a good low cost option.

• VIG
• SCHD
• DVY
• NOBL
• SDY

Data Sources:

• RiverFront Investment Group
• ETF.com
• Morningstar
• etfdb.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share data is approximate and may vary. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and consultation with a financial advisor.