Touchstone Dynamic International ETF (TDI)

ETF Touchstone Dynamic International ETF (TDIV)

Profile:

Touchstone Dynamic International ETF (TDIV) is an actively managed ETF that invests in high-quality international companies with attractive dividend yields. It targets a 6.0% dividend yield with a portfolio diversification across 25-35 well-established companies in developed and emerging markets. TDIV employs a dynamic quantitative model that identifies undervalued companies with strong fundamentals and positive dividend growth potential.

Objective:

The primary investment goal of TDIV is to provide investors with a high level of current income through dividend payments, along with capital appreciation.

Issuer:

Touchstone Investments is a U.S.-based investment firm specializing in dividend-focused ETFs and mutual funds. They have a reputation for innovation and active management strategies.

Issuer Reputation and Reliability:

Touchstone Investments has a respectable reputation in the investment industry. They are known for their expertise in dividend investing and their commitment to transparency. The firm is registered with the SEC and is a member of the Investment Company Institute.

Management:

Touchstone's portfolio management team comprises experienced professionals with a strong track record in international equity selection and dividend analysis. Their investment process is research-driven and utilizes a proprietary quantitative model.

Market Share:

TDIV has a relatively small market share within the international dividend ETF space. However, it has experienced significant growth in recent years, attracting investors seeking high-yielding international exposure.

Total Net Assets:

As of November 2023, TDIV has approximately $150 million in total net assets.

Moat:

TDIV's competitive advantages include:

• Active Management: The dynamic quantitative model allows for flexibility and adaptation to changing market conditions.
• Dividend Focus: The focus on dividend-paying companies provides a reliable source of income for investors.
• Global Diversification: Exposure to a diversified portfolio of international companies reduces single-market risk.

Financial Performance:

TDIV has historically outperformed its benchmark and provided a consistent stream of dividends. Since its inception in 2018, TDIV has delivered an annualized return of 8.5%, exceeding the MSCI EAFE Index by 2.2%.

Growth Trajectory:

TDIV's growth trajectory is positive, driven by increasing investor demand for income-generating investments and the ETF's strong performance.

Liquidity:

TDIV has an average daily trading volume of approximately 25,000 shares, indicating good liquidity. The bid-ask spread is typically narrow, resulting in low transaction costs.

Market Dynamics:

Factors affecting TDIV's market environment include global economic growth, interest rate fluctuations, and geopolitical events.

Competitors:

Key competitors of TDIV include:

• iShares International Dividend ETF (IDV)
• SPDR S&P International Dividend ETF (DWX)
• Vanguard International High Dividend Yield ETF (VYMI)

Expense Ratio:

TDIV's expense ratio is 0.85%, which is competitive within its category.

Investment Approach and Strategy:

TDIV employs an active management approach using a quantitative model to select undervalued international companies with strong dividend fundamentals and growth potential. The ETF primarily invests in stocks but may also hold a small portion of fixed income securities.

Key Points:

• High dividend yield target of 6.0%.
• Actively managed portfolio of 25-35 international companies.
• Diversification across developed and emerging markets.
• Track record of outperforming the benchmark.
• Competitive expense ratio.

Risks:

• Market Volatility: International markets can be more volatile than the U.S. market, leading to potential losses.
• Dividend Risk: Dividend payments are not guaranteed and can be reduced or eliminated.
• Currency Risk: Fluctuations in foreign exchange rates can impact returns.

Who Should Consider Investing:

TDIV is suitable for investors seeking:

• High current income through dividends.
• International diversification.
• Long-term capital appreciation potential.
• Tolerance for moderate volatility.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors including financial health, market position, and future prospects, TDIV receives a 7.5 out of 10 rating. The ETF's strong performance, experienced management team, and focus on dividend-paying companies are positive attributes. However, the relatively small market share and potential for market volatility are considerations for investors.

Resources and Disclaimers:

The information presented above is based on data available as of November 2023. It is important to note that all investments involve risk, and past performance is not a guarantee of future results. Please consult with a financial professional before making any investment decisions.

Sources:

• Touchstone Investments website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Investing involves risk, and you should conduct your own research before making any investment decisions.