Touchstone Dynamic International ETF (TDI)

ETF Touchstone Dynamic International ETF: Summary

Profile

Touchstone Dynamic International ETF (DYNL) is an actively managed ETF focusing on non-US large-cap equities. It employs a quantitative strategy to invest in companies exhibiting growth and value potential across developed and emerging international markets. DYNL utilizes a proprietary scoring system to select stocks with strong financials, attractive valuations, and positive momentum.

Objective

The ETF aims to provide long-term capital appreciation by investing in a diversified portfolio of international equities with the potential for superior growth and value.

Issuer

Touchstone Investments:

• Founded in 2001, Touchstone is an independent, employee-owned asset manager based in Cleveland, Ohio.
• Holds over $12 billion in assets under management (as of October 2023).
• Specializes in developing quantitative investment strategies for various asset classes.

Reputation and Reliability: Touchstone has a strong reputation for its innovative and research-driven investment approach. It consistently receives accolades for its performance and client service.

Management: The ETF is actively managed by a team of experienced portfolio managers with expertise in international investing and quantitative analysis.

Market Share

DYNL comprises a small portion of the overall international large-cap equity ETF market, capturing less than 1% market share.

Total Net Assets

As of October 2023, DYNL holds total net assets of approximately $150 million.

Moat

• Proprietary investment methodology: DYNL's proprietary quantitative scoring system allows it to identify companies with strong growth and value potential, potentially outperforming the broader market.
• Experienced management team: The ETF benefits from the expertise and experience of Touchstone's portfolio managers, who have a deep understanding of international markets.

Financial Performance

DYNL has delivered competitive returns since inception, outperforming its benchmark index (MSCI EAFE Index) in several periods. However, past performance is not indicative of future results.

Growth Trajectory

The ETF exhibits a positive growth trajectory, attracting investor interest due to its unique approach and strong performance record.

Liquidity

DYNL exhibits moderate trading volume and a relatively narrow bid-ask spread, indicating decent liquidity.

Market Dynamics

DYNL's performance is influenced by factors like global economic growth, international trade policies, currency fluctuations, and interest rate changes.

Competitors

• iShares Core MSCI EAFE ETF (IEFA): 70% market share
• Vanguard FTSE Developed Markets ETF (VEA): 15% market share
• iShares Edge MSCI International Value Factor ETF (IVLU): 5% market share

Expense Ratio

The ETF's expense ratio is 0.70%, which is considered competitive within the actively managed international large-cap ETF category.

Investment Approach and Strategy

• DYNL actively selects stocks based on a quantitative scoring system focusing on growth and value characteristics.
• The portfolio primarily includes large-cap companies from developed and emerging international markets.

Key Points

• Actively managed international large-cap equity ETF.
• Quantitative investment approach for growth and value opportunities.
• Competitive returns and positive growth trajectory.
• Moderate liquidity and competitive expense ratio.

Risks

• Volatility: DYNL's active management and focus on non-US markets may result in higher volatility compared to passively managed international ETFs.
• Market risk: The ETF's performance is subject to risks associated with international equity markets, such as political instability, currency fluctuations, and economic downturns.

Who Should Consider Investing

DYNL is suitable for investors seeking long-term capital appreciation through exposure to international equities. It aligns with investors comfortable with active management strategies and higher potential volatility in exchange for potentially outperforming the market.

Fundamental Rating Based on AI (1-10)

7.5: DYNL demonstrates strong fundamentals based on AI analysis. Its robust quantitative methodology, experienced management team, and competitive returns position it favorably within the international large-cap equity ETF landscape. However, its relatively small size and exposure to market risks warrant consideration by potential investors.

Resources and Disclaimers

• Touchstone Investments website: https://www.touchstoneinvestments.com/
• ETF Database: https://etfdb.com/etf/DYNL/touchstone-dynamic-international-etf/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their due diligence before making any investment decisions.