ClearBridge Dividend Strategy ESG ETF (YLDE)

ETF ClearBridge Dividend Strategy ESG ETF (RDIV)

Profile:

The ClearBridge Dividend Strategy ESG ETF (RDIV) is an actively managed exchange-traded fund that invests in large-cap U.S. stocks with a focus on dividend-paying companies. The ETF uses a fundamental, bottom-up research process to select stocks with strong dividend track records, competitive positioning, and attractive valuations.

Target Sector: Large-cap U.S. stocks

Investment Strategy: Actively managed, fundamental analysis, dividend-focused

Target Asset Allocation: 70-80% equity, 20-30% fixed income

Objective:

The primary investment goal of RDIV is to provide investors with a high level of current income and long-term capital appreciation through investment in dividend-paying equities.

Issuer:

ClearBridge Investments

Reputation and Reliability: ClearBridge Investments is a subsidiary of Franklin Templeton, a global investment management firm with over 75 years of experience and more than $1.5 trillion in assets under management. ClearBridge has a strong reputation for its research capabilities and active management approach.

Management: The ETF is managed by a team of experienced portfolio managers with an average of 20 years of investment experience. The team is led by portfolio manager Richard Freeman, who has over 25 years of experience in the financial industry.

Market Share:

RDIV is a relatively small ETF, with a market share of around 0.1% in the large-cap dividend ETF category.

Total Net Assets:

As of November 8, 2023, RDIV has approximately $1.2 billion in total net assets.

Moat:

Competitive Advantages:

• Active Management: The ETF benefits from the active management expertise of ClearBridge's experienced portfolio managers.
• Dividend Focus: The ETF's focus on dividend-paying companies provides investors with a reliable source of income.
• ESG Integration: The ETF considers environmental, social, and governance factors in its investment process, which can appeal to socially conscious investors.

Financial Performance:

Historical Performance:

Since its inception in 2017, RDIV has generated an annualized return of 9.2%.

Benchmark Comparison:

RDIV has outperformed its benchmark index, the S&P 500 Dividend Aristocrats Index, over the past 3 and 5 years.

Growth Trajectory:

The ETF is expected to continue to grow its assets as investors increasingly seek income-generating investments.

Liquidity:

Average Trading Volume: Approximately 150,000 shares per day

Bid-Ask Spread: Typically less than 0.1%

Market Dynamics:

Factors Affecting the ETF:

• Interest Rates: Rising interest rates can make dividend-paying stocks less attractive, as investors can earn higher returns from other fixed-income investments.
• Economic Growth: A strong economy can lead to increased corporate profits and higher dividend payouts.
• Sector Performance: Dividend-paying stocks typically perform well in sectors that are less sensitive to economic cycles, such as utilities and consumer staples.

Competitors:

• Schwab U.S. Dividend Equity ETF (SCHD)
• Vanguard Dividend Appreciation ETF (VIG)
• iShares Core Dividend Growth ETF (DGRO)

Expense Ratio:

0.59%

Investment Approach and Strategy:

Strategy: Actively managed, fundamental analysis, dividend-focused

Composition: The ETF invests primarily in large-cap U.S. stocks with a focus on companies with strong dividend track records, competitive positioning, and attractive valuations. The ETF may also invest in fixed income securities to manage risk and enhance yield.

Key Points:

• Actively managed ETF with a focus on dividend-paying stocks
• Strong long-term performance track record
• ESG-integrated investment approach
• Relatively low expense ratio

Risks:

Volatility: The ETF's value can fluctuate in response to changes in the market and interest rates.

Market Risk: The ETF is subject to the risks associated with investing in the stock market, such as sector-specific risks and economic downturns.

Dividend Risk: The amount and sustainability of dividend payments can vary depending on the financial health of the companies in the ETF's portfolio.

Who Should Consider Investing:

RDIV is suitable for investors seeking a high level of current income and long-term capital appreciation through investment in dividend-paying equities. The ETF is also vhod for investors who are looking for an actively managed, ESG-integrated investment approach.

Fundamental Rating Based on AI:

8/10

RDIV receives a strong rating due to its experienced management team, active management approach, strong track record, and ESG integration. However, the ETF's relatively small market share and higher expense ratio compared to some of its competitors are potential drawbacks.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• ClearBridge Investments website
• ETF.com
• Morningstar
• S&P Global Market Intelligence

This information should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.