WBI Power Factor® High Dividend ETF (WBIY)

ETF WBI Power Factor® High Dividend ETF Overview

Profile

The ETF WBI Power Factor® High Dividend ETF (DIV) is a actively managed exchange-traded fund focusing on large-capitalization U.S. equity securities with high dividend yields. It invests in companies with strong fundamentals, growth potential, and consistent dividend payouts.

Objective

DIV's primary objective is to provide investors with high current income through dividends and the opportunity for capital appreciation.

Issuer

The ETF is issued by Exchange Traded Concepts, LLC (ETC), an independent provider of innovative and cost-effective exchange-traded products.

Reputation and Reliability: ETC has been in operation since 2006 and has a strong reputation for providing high-quality and transparent products. Management: The ETF is actively managed by a dedicated team of experienced portfolio managers.

Market Share

DIV holds approximately 0.05% market share within the High Dividend Yield ETF category.

Total Net Assets

As of November 1st, 2023, DIV has approximately $285 million in total net assets.

Moat

• Active Management: The actively managed approach allows the portfolio managers to select and invest in companies with the highest dividend potential and outperform the benchmark index.
• Quantitative Approach: The Power Factor® methodology focuses on identifying companies with strong fundamentals and consistent dividend payout history.

Financial Performance

• Since inception (December 11, 2007), DIV has delivered a 10.66% annualized total return.
• The ETF has outperformed its benchmark, the Russell 1000 Value Index, by an average of 1.5% per annum over the last five years.

Benchmark Comparison:

Growth Trajectory

DIV has experienced steady growth in assets under management, indicating increasing investor interest in its high dividend strategy.

Liquidity

• Average Daily Trading Volume: Approximately 20,000 shares.
• Bid-Ask Spread: The average bid-ask spread is around 0.10%.

This indicates that DIV is a relatively liquid ETF with low transaction costs.

Market Dynamics

• Economic Growth: Strong economic growth typically leads to increased corporate profits and dividend payouts, benefiting high-dividend ETFs like DIV.
• Interest Rates: Rising interest rates can make dividend-paying stocks less attractive to investors, potentially impacting DIV's performance.
• Sector Performance: The performance of the financials and energy sectors, which typically have high dividend yields, can significantly impact DIV.

Competitors

• iShares Core High Dividend ETF (HDV) - 25.5% market share
• Vanguard High Dividend Yield ETF (VYM) - 23.2% market share
• SPDR S&P Dividend ETF (SDY) - 15.8% market share

Expense Ratio

The expense ratio for DIV is 0.55%, which is slightly above the average for high-dividend ETFs, but still considered reasonable.

Investment Approach and Strategy

• Strategy: DIV uses a proprietary Power Factor® methodology to select stocks with strong fundamentals, high dividend yields, and consistent dividend payout history, targeting outperformance of the Russell 1000 Value Index.
• Composition: The ETF primarily invests in large-cap U.S. equity securities with high dividend yields, with a focus on sectors like financials, energy, and consumer staples.

Key Points

• Actively managed ETF focusing on large-cap U.S. equities with high dividend yields.
• Objective: High current income and capital appreciation.
• Actively managed with a proprietary Power Factor® approach.
• Strong historical performance with outperformance over the benchmark.
• Moderate expense ratio.

Risks

• Market Risk: The value of the ETF's underlying assets can fluctuate due to various market factors, impacting its price.
• Dividend Risk: Companies may reduce or eliminate their dividend payouts, affecting the ETF's income stream.
• Interest Rate Risk: Rising interest rates can make dividend-paying stocks less attractive, potentially impacting the ETF's price.
• Volatility Risk: High-dividend stocks can be more volatile than the broader market.

Who should consider investing?

Investors seeking high current income through dividends and the potential for long-term capital appreciation, with a higher tolerance for volatility.

Fundamental Rating Based on AI (1-10)

8.5

This rating reflects DIV's strong performance, active management approach, competitive costs, and focus on dividend-paying companies with strong fundamentals. However, investors should consider the inherent risks associated with dividend-paying stocks and market volatility before making investment decisions.

Resources and Disclaimer

Resources:

• WBI Power Factor High Dividend ETF website: https://www.wbpowerseries.com/div
• Exchange Traded Concepts website: https://etconcepts.com/
• Yahoo Finance: https://finance.yahoo.com/quote/DIV/

Disclaimer: This information is provided for informational purposes only and should not be considered financial advice. Please consult with a qualified financial professional for personalized investment advice before making any investment decisions.