The Franklin Templeton Low Volatility High Dividend ETF (LVHD) is designed to mirror the performance of the QS Low Volatility High Dividend Index. This index, developed and sponsored by Franklin Advisers, Inc., the fund's subadviser, aims to deliver consistent income by investing in the stocks of profitable U.S. companies characterized by relatively high dividend yields and lower price and earnings volatility. The index encompasses a diverse range of U.S. companies, including large, mid, and small-cap stocks, drawn from the largest 3,000 U.S. stocks by the Solactive US Broad Market Index. Franklin Advisers employs a proprietary methodology to calculate a composite stable yield score, adjusting the yields of stocks based on their price and earnings volatility. The Underlying Index undergoes annual reconstitution and quarterly rebalancing, with individual component and sector concentration limits to ensure diversification. The fund itself follows a passive investment strategy, refraining from attempting to outperform the Underlying Index. It emphasizes low portfolio turnover, reducing costs and risks associated with active management. Additionally, the fund may use index futures, options, and other financial instruments, comprising up to 20% of its net assets, to manage risk and enhance returns. As of March 31, 2023, the utilities sector represented the top sector in the fund's Underlying Index. This sector allocation is subject to change over time.
The Franklin Templeton Low Volatility High Dividend ETF (LVHD) places a strong emphasis on dividends as a key component of its investment strategy. The fund seeks to provide investors with a reliable and stable income by investing in the stocks of profitable U.S. companies that exhibit both relatively high dividend yields and lower price and earnings volatility. The focus on dividends is reflected in the selection criteria of the QS Low Volatility High Dividend Index, which forms the basis for LVHD's investment approach. Stocks included in the Underlying Index must not only have relatively high dividend yields but also demonstrate profitability over the past four fiscal quarters. The fund's commitment to dividends is further underscored by its concentration in the utilities sector, as of March 31, 2023. This sector-specific allocation highlights the fund's dedication to delivering income to investors through its strategic investment in dividend-paying securities.
The Franklin Templeton Low Volatility High Dividend ETF (LVHD) is meticulously crafted to track the investment results of the QS Low Volatility High Dividend Index. This index, developed and sponsored by Franklin Advisers, Inc., serves as the benchmark for LVHD's performance. The fund employs a passive or indexing investment approach, refraining from attempting to outperform the Underlying Index. Instead, it seeks to replicate the index's performance by investing in a diversified portfolio of stocks from profitable U.S. companies with high dividend yields and lower price and earnings volatility. The fund's commitment to tracking the index is evident in its adherence to the index's reconstitution and rebalancing schedule, ensuring that the portfolio aligns with the most up-to-date composition of the Underlying Index. Franklin Advisers' proprietary methodology, coupled with the fund's focus on low portfolio turnover, underscores its dedication to providing investors with a consistent and reliable investment strategy closely tied to the performance of the QS Low Volatility High Dividend Index.
The Franklin Templeton Low Volatility High Dividend ETF (LVHD) aims to maintain a strong correlation with the QS Low Volatility High Dividend Index, the benchmark it seeks to replicate. The fund's investment strategy is designed to closely align with the index by investing in U.S. stocks of profitable companies with high dividend yields and lower price and earnings volatility. By adhering to the index's proprietary methodology, developed by Franklin Advisers, Inc., the fund aims to achieve a correlation that accurately reflects the performance of the Underlying Index. The use of a passive or indexing investment approach further contributes to a robust correlation, as LVHD does not deviate from the index's composition or attempt to time the market. This commitment to tracking the Underlying Index enhances the fund's ability to provide investors with an investment vehicle that effectively mirrors the performance of the QS Low Volatility High Dividend Index.
As of March 31, 2023, the sector composition of the Franklin Templeton Low Volatility High Dividend ETF (LVHD) was notably characterized by its emphasis on the utilities sector. The fund's underlying index, the QS Low Volatility High Dividend Index, reflects a strategic allocation to the utilities sector, highlighting its commitment to diversification within specific industries. The fund's sector exposure is subject to change over time, as it follows the index's annual reconstitution and quarterly rebalancing schedule. While LVHD concentrates on profitable U.S. companies with high dividend yields and lower volatility across various sectors, the current prominence of the utilities sector suggests a deliberate focus on stable and income-generating assets. Investors considering LVHD may find this sector-specific approach aligns with their investment goals, seeking a balance between dividend income and reduced volatility within their portfolio.
The Franklin Templeton Low Volatility High Dividend ETF (LVHD) provides investors with exposure to a carefully selected portfolio of U.S. stocks that meet specific criteria for profitability, high dividend yields, and lower price and earnings volatility. The fund's exposure is driven by its commitment to tracking the QS Low Volatility High Dividend Index, which serves as the benchmark for LVHD's performance. The index, developed by Franklin Advisers, Inc., employs a proprietary methodology to identify and rank profitable U.S. companies. LVHD offers exposure to a diversified range of market capitalizations, including large, mid, and small-cap stocks, drawn from the largest 3,000 U.S. stocks. The fund's investment strategy, characterized by a passive or indexing approach, underscores its commitment to providing investors with exposure to a stable and income-generating asset class, aligning with the objectives of those seeking consistent returns through a focus on dividends and reduced volatility.
ETF Insider is a data-driven portfolio analytics and optimization platform that introduces a more efficient and practical way to visualize, analyze and optimize portfolios.
Rather than focusing on the surface-level attributes of ETFs and Mutual Funds, ETF Insider goes deeper by examining the underlying holdings of exchange traded products.
By organizing and structuring that data, investors can easily navigate within their overlapping layers.
This innovative perspective combined with modern data visualization and modeling tools, provides an entirely new approach to portfolio optimization that can quickly expose both portfolio inefficiencies and opportunities.
4 min readCompare the GSG and COMB ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies to see how they stack up against each other. Whether you're a seasoned investor or just getting started, our comparison provides valuable insights to guide your investment decisions.
5 min readThe BSJL ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
4 min readThe key difference between IEMG and EEM lies in their composition, geographic exposure, and expense ratios. Consider using ETF Insider—a user-friendly app.
ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
