DIVI - DIVI ETF: Decent Product But Not A Perfect Buy

2024-04-25 14:03:04 ET

Summary

• Franklin International Core Dividend Tilt Index ETF seeks to incorporate a dividend tilt and offers efficient access to developed market equities outside of North America.
• DIVI is not particularly stable, but has a good track record of risk-adjusted returns.
• DIVI focuses on European stocks, which account for 60% of its portfolio, and may benefit from a pickup in consumer spending and grants from the recovery fund.
• The financial sector also looks cheap and offers enticing shareholder yields.
• However, caution is advised as the risk-reward on the charts is not too encouraging.

Introduction

The Franklin International Core Dividend Tilt Index ETF ( DIVI ) is a 7-year-old ETF, with $765m in AUM that offers efficient access (an expense ratio of just 0.09%) to around 25 developed market equities sourced from markets beyond North America....

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