Trends

DIVI: International Dividend Fund With A Low-Risk Profile

Trending 1 year ago
beritaja.com
Risk-Profit chart connected blackboard

IvelinRadkov/iStock via Getty Images

This dividend ETF article bid intends astatine evaluating products regarding nan comparative past capacity of their strategies and value of their existent portfolios. As holdings and their weights alteration complete time, reviews whitethorn beryllium updated erstwhile necessary.

DIVI strategy and portfolio

The Franklin International Core Dividend Tilt Index ETF (NYSEARCA:DIVI) has been search nan Morningstar Developed Markets ex-North America Dividend Enhanced Select Index since 06/01/2016. It has 537 holdings, a 12-month distribution output of 5.60% and a inexpensive disbursal ratio of 0.09%. Distributions are paid quarterly.

As described successful nan prospectus by Franklin Templeton, nan underlying scale “includes a information selection and weighting process that intends to present a higher dividend output than nan Parent Index (…) while limiting expected search error”. It includes companies from nan pursuing countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, and Poland. The scale is reconstituted quarterly and nan turnover complaint successful nan past fiscal twelvemonth was 30%.

The money is mostly invested successful ample and mega-cap companies (86% of plus value). European companies person an aggregate weight of 58%, followed by Asia (27%). Hong Kong weighs astir 3%, truthful nonstop vulnerability to China is low.

Regions

Regions (chart: author: data: Franklin Templeton)

Financials are nan heaviest assemblage pinch 21.5% of plus value. Healthcare, user discretionary and industrials are betwixt 10% and 13%. Other sectors are beneath 9%.

Sector breakdown

Sector breakdown (chart: author: data: Franklin Templeton)

The apical 10 holdings, listed below, correspond 14.7% of plus value. The apical sanction weighs astir 2% arsenic of writing, truthful risks related to individual stocks are low.

Name

Weight %

Country

Ticker

NESTLE SA REG

2.06

CH

NESN

ASML HOLDING NV

1.77

NL

ASML

NOVARTIS AG REG

1.67

CH

NOVN

BHP GROUP LTD

1.53

AU

BHP

LVMH MOET HENNESSY LOUIS VUITTON

1.50

FR

MC

NOVO NORDISK

1.46

DK

NOVOB

ASTRAZENECA PLC

1.33

GB

AZN

ROCHE HOLDING AG

1.13

CH

ROG

BNP PARIBAS

1.11

FR

BNP

ALLIANZ SE REG

1.11

DE

ALV

Past capacity compared to competitors

The adjacent array and floor plan comparison DIVI capacity since June 2016 pinch 5 world dividend ETFs:

  • The SPDR S&P International Dividend ETF (DWX), reviewed here
  • The WisdomTree Global ex-U.S. Quality Dividend Growth Fund (DNL), reviewed here.
  • The iShares International Select Dividend ETF (IDV), reviewed here.
  • The First Trust Dow Jones Global Select Dividend Index ETF (FGD), reviewed here.
  • The Invesco International Dividend Achievers ETF (PID), reviewed here.

since June 2016

Total Return

Annual Return

Drawdown

Sharpe

Volatility

DIVI

68.80%

8.10%

-27.76%

0.61

13.33%

DWX

32.33%

4.26%

-36.05%

0.28

14.05%

DNL

76.12%

8.79%

-34.85%

0.51

17.43%

IDV

44.54%

5.63%

-42.50%

0.35

18.35%

FGD

48.29%

6.04%

-44.84%

0.36

19.37%

PID

61.76%

7.42%

-46.07%

0.44

18.14%

DIVI vs. competitors since 6/1/2016

DIVI vs. competitors since 6/1/2016 (Portfolio123)

DIVI is 2nd to DNL successful full return, but it has a little volatility, a lesser drawdown and, past but not least, a amended Sharpe ratio. This metric intends it is nan champion of nan battalion successful risk-adjusted return. Moreover, it has outperformed its competitors by 12 to 20 percent points successful nan analyzable marketplace conditions of nan past 12 months. It is nan only 1 successful summation successful nan list, arsenic shown by nan floor plan below.

DIVI vs. competitors, past 12 months

DIVI vs. competitors, past 12 months (Portfolio123)

DIVI has besides its downsides: it is simply a mini money (about $200M successful assets), it is not very liquid (3-month mean measurement is astir 100,000 shares/day), and distributions person been rather adaptable (see adjacent chart).

Annual distributions

Annual distributions (Seeking Alpha)

Takeaway

DIVI holds complete 500 stocks from developed countries and implements a strategy focused connected output optimization. Europe represents 58% of plus worth and nan apical assemblage is financials pinch 21.5%. The money is well-diversified crossed sectors and holdings, The output looks rather charismatic for income-seeking investors, but distributions person been rather variable. It thumps 5 of its competitors successful risk-adjusted return since inception, and it has performed particularly good successful nan past 12 months.

Quantitative Risk & Value (QRV) features data-driven strategies successful stocks and closed-end costs outperforming their benchmarks since inception. Get started pinch a two-week free proceedings now. 

Editor: Naga



Read other contents from Beritaja.com at
More Source
close