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The Franklin US Core Dividend Tilt Index ETF is a passively managed vehicle tracking the Morningstar® US Dividend Enhanced Select IndexSM. UDIV has outperformed IVV and a few dividend ETFs since the strategy change in August 2022, capturing over 101% of IVV's upside. However, my analysis shows that compared to IVV, IT-heavy UDIV has weaker growth characteristics, which I believe will restrain its upside during the de-escalation rally.
I'm generally not a fan of chasing returns, whether they be in individual stocks or in mutual funds or exchange traded funds (ETFs).
This week's ETF Wrap takes you inside the rally in dividend-paying equity ETFs as investors seek to position for President-elect Donald Trump's second term in the White House.
Even though most people expect the Federal Reserve to leave interest rates unchanged this week, there remains much uncertainty for the rest of the year. Fed watchers will be looking for signals about whether rates will remain steady into 2024 or if one or two hikes might occur.
Investors have plowed funds back into dividend paying offerings over the last two weeks ended this past Wednesday, and it's easy to see why — the dual threat of inflation and not one but three rate hikes on the agenda this year has markets spooked.
Franklin Templeton has been building out its ETF lineup through product development, mutual fund conversions, and acquisitions. While it had $10 billion in U.S.-listed ETF assets at the end of November, aided by $1 billion of net inflows, the firm has ambitions of being a much larger player in the space.
In terms of what's working among equities this year, the pickings are slim, but dividends stocks and exchange traded funds are, at the very least, performing less poorly than the broader market. Add to that, many dividend-payers are displaying less volatility than broader benchmarks, confirming there's plenty of utility with this asset class.
One of the brightest spots in equity markets this year — which have been hard to come by — are dividend stocks. Of course, that extends to dividend exchange traded funds, too.
SEC filings for UDIV aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.