AAM S&P 500 High Dividend Value ETF (SPDV)

Overview of AAM S&P 500 High Dividend Value ETF (SPHD)

Profile: SPHD is an ETF that invests in high-dividend-paying stocks within the S&P 500 Index. It focuses on value stocks with the potential for long-term capital appreciation and high dividend income.

Objective: The primary investment goal of SPHD is to provide investors with a high level of current income and long-term capital growth through exposure to a diversified portfolio of high-dividend-paying value stocks.

Issuer:

• Company: AdvisorShares (NYSE: ADVS)
• Reputation and Reliability: AdvisorShares has been in the ETF business since 2009 and has a strong track record of managing thematic and actively managed ETFs.
• Management: The ETF is actively managed by a team of experienced portfolio managers with expertise in value stock selection and dividend investing.

Market Share: SPHD has a market share of approximately 3.5% in the high-dividend value ETF category.

Total Net Assets: As of November 9, 2023, SPHD has a total net asset of approximately $4.5 billion.

Moat: SPHD's competitive advantages include:

• Active Management: The ETF's active management approach allows it to select stocks that meet its specific value and dividend criteria, potentially outperforming passively managed high-dividend ETFs.
• Value Focus: The focus on value stocks may provide downside protection during market downturns and enhance long-term capital appreciation potential.
• High Dividend Yield: SPHD offers a current dividend yield of approximately 4.6%, significantly higher than the S&P 500 index.

Financial Performance:

• Historical Returns: Since its inception in 2011, SPHD has generated an annualized return of 13.2%, outperforming the S&P 500 Index by approximately 2.8% per year.
• Benchmark Comparison: SPHD consistently outperforms its benchmark, the S&P 500 High Dividend Index, demonstrating its active management's effectiveness.

Growth Trajectory: SPHD's growth trajectory is positive, with net assets and AUM increasing steadily over the years. The increasing demand for high-dividend and value-oriented investments suggests continued growth potential.

Liquidity:

• Average Trading Volume: SPHD has an average daily trading volume of approximately 2.5 million shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically tight, ranging from 0.01% to 0.02%, showcasing efficient trading.

Market Dynamics:

• Positive Factors: Low-interest-rate environment, increasing demand for income-generating investments, and focus on value investing during market uncertainty.
• Negative Factors: Rising interest rates, volatility in the stock market, and changes in economic growth outlook.

Competitors:

• iShares S&P 500 High Dividend Value ETF (HDV) - Market share: 6.1%
• Vanguard High Dividend Value ETF (VYM) - Market share: 22.4%
• SPDR S&P Dividend ETF (SDY) - Market share: 11.2%

Expense Ratio: 0.30% per year, which is slightly higher than some passively managed high-dividend ETFs.

Investment Approach and Strategy:

• Strategy: Actively managed, selecting stocks based on value criteria and high dividend yield.
• Composition: Primarily holds large-cap value stocks within the S&P 500 Index.

Key Points:

• High dividend yield.
• Actively managed for potential alpha generation.
• Value stock focus for downside protection and long-term growth potential.
• Good liquidity and tight bid-ask spread.

Risks:

• Volatility: SPHD's historical volatility is moderately higher than the S&P 500 Index, reflecting the inherent volatility of value stocks.
• Market Risk: The ETF's performance is directly tied to the performance of the underlying stocks, exposing it to market risks.

Who Should Consider Investing:

• Investors seeking a high level of current income and potential long-term capital appreciation.
• Value investors looking to diversify their portfolio with undervalued stocks.
• Income-oriented investors seeking alternatives to traditional fixed-income investments.

Disclaimer: The information provided above is for informational purposes only and should not be considered investment advice. Always conduct your research and consult a financial professional before making any investment decisions.