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

Overview

The AAM S&P 500 High Dividend Value ETF (SPDV) seeks to track the performance of the S&P 500 High Dividend Value Index. It focuses on large-cap U.S. equities with both high dividend yields and value characteristics. The fund aims to provide a combination of current income and long-term capital appreciation through a rules-based approach.

Reputation and Reliability

AAM is a smaller, more specialized ETF provider. Their reputation is still developing, with reliability assessed based on fund performance and adherence to investment strategy.

Management Expertise

The management team has expertise in quantitative investing and factor-based strategies. Their experience with similar ETFs contributes to the fund's operational effectiveness.

Goal

The primary investment goal of SPDV is to provide investment results that closely correspond, before fees and expenses, to the performance of the S&P 500 High Dividend Value Index.

Investment Approach and Strategy

Strategy: SPDV aims to track the S&P 500 High Dividend Value Index, which selects high dividend yield stocks from the S&P 500 index based on value factors.

Composition SPDV primarily holds common stocks of U.S. large-cap companies. The portfolio is diversified across various sectors, with significant allocations to financials, utilities, and energy.

Market Share: SPDV's market share within the high dividend and value ETF space is relatively small compared to larger, more established competitors.

Total Net Assets (AUM): 135000000

Key Competitors

• SPHD
• VYM
• DVY

Competitive Landscape

The high dividend value ETF industry is competitive, with several well-established players. SPDV offers a distinct factor-based approach combining high dividend yield and value, potentially offering superior risk-adjusted returns. However, its smaller size and less-established brand can be disadvantages compared to larger competitors.

Historical Performance: Historical performance should be examined across various market cycles. (Refer to fund fact sheets for specific data.)

Benchmark Comparison: The fund's performance should be compared against the S&P 500 High Dividend Value Index to evaluate tracking effectiveness.

Expense Ratio: 0.29

Average Trading Volume

SPDV's average trading volume is moderate, indicating adequate liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, minimizing transaction costs for investors.

Market Environment Factors

Economic growth, interest rate movements, and sector-specific trends influence SPDV's performance, particularly affecting the financial, utility, and energy sectors.

Growth Trajectory

SPDV's growth trajectory depends on its ability to attract investors seeking high dividend yields and value stocks. Changes to strategy and holdings may occur based on index reconstitution and market conditions.

Competitive Edge

SPDV distinguishes itself through a rules-based index methodology targeting high dividend yield and value. The fund's combination of these factors allows it to stand out in a crowded marketplace. The relatively low expense ratio aids its competitiveness. However, SPDVu2019s competitive advantage hinges on its effective replication of its specific benchmark.

Volatility

The volatility of SPDV is correlated to the volatility of its underlying holdings and market conditions. Risk measures such as beta and standard deviation should be considered.

Market Risk

SPDV is subject to market risk, particularly in the financial, utility, and energy sectors. Changes in interest rates, commodity prices, and economic growth can impact the fund's performance.

Ideal Investor Profile

The ideal investor for SPDV is a risk-aware investor seeking current income and long-term capital appreciation through dividend-paying value stocks. Investors looking for exposure to the large-cap U.S. equity market with a focus on dividend income are a good fit.

Market Risk

SPDV is suitable for long-term investors and passive index followers who are looking for a relatively high dividend yield and value exposure.

The AAM S&P 500 High Dividend Value ETF (SPDV) tracks the S&P 500 High Dividend Value Index, targeting high dividend yield and value stocks in the S&P 500. It offers a factor-based approach to dividend investing, potentially providing competitive risk-adjusted returns. SPDV is best suited for long-term investors seeking income and capital appreciation. Its smaller AUM and newer brand are important factors to consider compared to larger, established competitors, however, the fund offers a unique combination of factors that differentiate it from its competitors.

• DVY
• VYM
• SDY
• SPHD

Data Sources:

• ETF.com
• Morningstar
• AAM Website

Disclaimers:

This analysis is based on publicly available information and should not be considered financial advice. ETF performance is subject to market risk and past performance is not indicative of future results.