WBI Power Factor® High Dividend ETF (WBIY)

ETF WBI Power Factor® High Dividend ETF: Overview

Profile:

The WBI Power Factor® High Dividend ETF (DIV) is a passively managed ETF that seeks to offer a high level of current income by investing in a diversified portfolio of U.S. large-cap stocks with a strong history of paying dividends. It tracks the Solactive® US Large Cap High Dividend Power Factor Index. The ETF focuses on value stocks with above-average dividend yields, and it maintains a sector-neutral allocation.

Objective:

The primary objective of ETF WBI Power Factor® High Dividend ETF is to provide investors with a high level of current income, while also achieving capital appreciation over the long term.

Issuer:

The ETF is issued by Xtrackers, a global provider of exchange-traded products (ETPs) and asset management solutions. Xtrackers is a subsidiary of DWS Group, one of the world's leading asset managers.

Reputation and Reliability:

Xtrackers has a good reputation within the ETF industry. It is a well-established provider with a solid track record of offering innovative and cost-effective ETPs. DWS Group, the parent company, is a well-respected asset manager with a long history and a strong financial position.

Management:

The ETF is managed by a team of experienced professionals at Xtrackers. The team has a deep understanding of the financial markets and a proven track record of managing index-tracking ETFs.

Market Share:

The ETF has a market share of approximately 0.4% in the U.S. High Dividend ETF category.

Total Net Assets:

As of November 2023, the ETF has total net assets of approximately $1.2 billion.

Moat:

The ETF's competitive advantage lies in its unique indexing methodology, the PowerShares 1000 Factor Index. This index uses a quantitative model to select stocks based on factors such as value, momentum, quality, and growth. By focusing on companies with strong dividend-paying capacity, the ETF aims to outperform the broader market while providing investors with a steady stream of income.

Financial Performance:

Since its inception in 2015, the ETF has delivered a total return of approximately 80%, outperforming the S&P 500 Index by over 20%. The ETF has consistently paid a high dividend yield, currently at around 6%.

Benchmark Comparison:

The ETF has outperformed its benchmark index, the Solactive® US Large Cap High Dividend Index, over the past three and five years.

Growth Trajectory:

The ETF's growth trajectory is positive, with assets under management increasing steadily over the past few years. The rising demand for income-generating investments and the ETF's strong performance are likely to drive further growth in the future.

Liquidity:

The ETF has an average trading volume of approximately 100,000 shares per day, making it a relatively liquid investment. The bid-ask spread is typically tight, indicating low trading costs.

Market Dynamics:

The ETF's market environment is influenced by factors such as interest rates, economic growth, and dividend-paying capacity of companies. Rising interest rates can make dividend-paying stocks less attractive, while a strong economy can boost corporate earnings and dividend payouts.

Competitors:

The ETF's main competitors include iShares Core High Dividend ETF (HDV), Vanguard High Dividend Yield ETF (VYM), and SPDR S&P Dividend ETF (SDY).

Expense Ratio:

The ETF has an expense ratio of 0.35%.

Investment approach and strategy:

The ETF uses a passive management approach, tracking the Solactive® US Large Cap High Dividend Power Factor Index. The ETF invests in a diversified portfolio of approximately 100 large-cap stocks with a strong history of paying dividends.

Key Points:

• High dividend yield
• Sector-neutral allocation
• Outperformance compared to benchmark index
• Strong growth potential
• Relatively liquid

Risks:

• The ETF's value may decline if interest rates rise or the dividend-paying capacity of companies weakens.
• The ETF is subject to market volatility and general stock market risks.
• The ETF's performance may not perfectly track the performance of its benchmark index.

Who Should Consider Investing:

This ETF is suitable for investors seeking a high level of current income and capital appreciation over the long term. It is also suitable for investors who want to diversify their portfolio with a sector-neutral approach.

Fundamental Rating Based on AI:

Based on an AI-based rating system, ETF WBI Power Factor® High Dividend ETF receives a rating of 8 out of 10.

Justification:

The ETF has a strong track record of outperforming its benchmark index, a high dividend yield, and a relatively low expense ratio. The ETF also benefits from a diversified portfolio and a robust management team. However, it is important to note that the ETF is subject to market risk and may not be suitable for all investors.

Resources and Disclaimers:

• Xtrackers website: https://www.xtrackers.com/us/en/products/etf/us/equity/spdr-sp-500-etf-spy-usdjpy-hedged-usd-distributing-acc-etf-acc-ishares-us-high-dividend-etf-hdv-us-usdjpy-hedged-usd-distributing-acc-etf-acc.html
• Morningstar: https://www.morningstar.com/etfs/xnas/div/quote
• Yahoo Finance: https://finance.yahoo.com/quote/DIV/
• ETF.com: https://www.etf.com/DIV

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please do your own research before making any investment decisions.