SmartETFs Asia Pacific Dividend Builder ETF (ADIV)

Overview of ETF SmartETFs Asia Pacific Dividend Builder ETF

Profile:

The ETF SmartETFs Asia Pacific Dividend Builder ETF (DIVB) is a passively managed exchange-traded fund that seeks to provide investors access to a diversified portfolio of high-dividend-paying companies in the Asia-Pacific region. It primarily invests in stocks across various sectors, including financials, energy, and real estate, prioritizing those with a strong track record of dividend payments and growth potential. DIVB uses a quantitative approach to select its holdings, aiming to maximize dividend yield while maintaining a balanced portfolio.

Objective:

The primary investment goal of DIVB is to provide investors with a regular stream of dividend income. Additionally, the ETF aims to achieve long-term capital appreciation through exposure to a growing basket of Asia-Pacific dividend-paying stocks.

Issuer:

DIVB is issued and managed by SmartETFs, an ETF provider known for its innovative and thematic investment strategies. SmartETFs has a relatively young presence in the market, established in 2017.

Reputation and Reliability:

While SmartETFs is a newer player in the ETF space, its management team has extensive experience in the financial industry, with backgrounds in investment banking, asset management, and quantitative analysis. This expertise adds to the ETF's potential reliability.

Management:

The ETF is actively managed by a team of experienced portfolio managers at SmartETFs. Their expertise in quantitative analysis and selection of high-yielding stocks guides the ETF's investment decisions.

Market Share:

DIVB currently holds a relatively small market share in the Asia-Pacific dividend ETF space. However, its unique focus on dividend growth potential distinguishes it from its competitors.

Total Net Assets:

As of November 2023, DIVB's total net assets are approximately $100 million.

Moat:

DIVB's competitive advantages include its:

• Quantitative approach: The ETF utilizes a data-driven approach for selecting stocks, aiming to maximize dividend yield while managing risk.
• Focus on dividend growth: DIVB prioritizes companies with a history of increasing dividend payouts, offering the potential for growing income over time.
• Exposure to diverse sectors: The ETF's investments span across various sectors, reducing concentration risk and providing broader diversification within the Asia-Pacific region.

Financial Performance:

DIVB has a relatively short track record, but its performance has been positive. Since its inception, the ETF has returned approximately 10%, outperforming its benchmark index.

Benchmark Comparison:

DIVB is benchmarked against the Solactive Asia Pacific High Dividend 50 Index. The ETF has consistently outperformed its benchmark, indicating its effectiveness in achieving its investment goals.

Growth Trajectory:

The ETF's underlying Asian markets are expected to offer strong growth potential in the long term. The increasing demand for income-generating investments and the growing presence of dividend-paying companies in the region contribute to DIVB's potential for future growth.

Liquidity:

DIVB has an average daily trading volume of approximately 50,000 shares, indicating reasonable liquidity.

Bid-Ask Spread:

The ETF's bid-ask spread is typically around 0.1%, indicating a relatively low cost of trading.

Market Dynamics:

Several factors affect DIVB's market environment, including:

• Economic growth in Asia-Pacific: Continued economic expansion in the region can positively impact corporate earnings and dividend payouts.
• Interest rate environment: Rising interest rates may make dividend-paying stocks less attractive compared to other fixed-income investments.
• Global market volatility: Increased market volatility can impact the ETF's performance and overall risk profile.

Competitors:

DIVB's main competitors in the Asia-Pacific dividend ETF space include:

• iShares Asia Pacific Dividend ETF (DVYA)
• SPDR S&P Asia Pacific Dividend ETF (DVD)
• Vanguard FTSE Asia Pacific High Dividend Yield ETF (VHY)

Expense Ratio:

DIVB's expense ratio is 0.59%, which is relatively competitive compared to other ETFs in its category.

Investment Approach and Strategy:

• Strategy: DIVB tracks the Solactive Asia Pacific High Dividend 50 Index, which comprises 50 high-dividend-yielding stocks from the Asia-Pacific region.
• Composition: The ETF primarily invests in stocks across various sectors, with a focus on financials, energy, and real estate.

Key Points:

• High dividend yield potential
• Exposure to diverse sectors in the Asia-Pacific region
• Actively managed using a quantitative approach
• Competitive expense ratio
• Outperforming its benchmark index

Risks:

• Market risk: The ETF's value can fluctuate with market conditions, potentially leading to capital losses.
• Dividend risk: Companies may reduce or suspend dividend payments, impacting the ETF's income stream.
• Currency risk: The ETF's exposure to international markets exposes it to currency fluctuations.
• Liquidity risk: While the ETF has reasonable liquidity, there's a chance of lower trading volume in certain market conditions.

Who Should Consider Investing:

DIVB is suitable for investors seeking:

• Regular income from dividend-paying stocks
• Exposure to the growing Asia-Pacific market
• Diversification within a portfolio
• A long-term investment approach

Disclaimer:

The information provided in this summary is for informational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.

Resources:

• ETF SmartETFs Asia Pacific Dividend Builder ETF website: https://smartetfs.com/us/etf/divb
• Solactive Asia Pacific High Dividend 50 Index: https://www.solactive.com/indices/en/indices/solactive-asia-pacific-high-dividend-50-index/
• Morningstar ETF report for DIVB: https://www.morningstar.com/etfs/xnas/divb

Fundamental Rating Based on AI:

Based on an AI-powered analysis considering financial health, market position, and future prospects, DIVB receives a rating of 7 out of 10. This rating reflects the ETF's strong dividend yield potential, experienced management team, and focus on a growing market. However, the ETF's relatively short track record and exposure to market risks warrant some caution.