Franklin Intl Core Div Tlt Idx ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in quality exposure and an underweight in liquidity exposure compared with category peers. High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And a low liquidity exposure is rooted in stocks with lower trading volumes, limiting managers' flexibility. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

ASML Hld

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Rogers

Autoliv

ING Group 6.2 % Perpetual Debt Secs 2003-Without Fixed Called for red.on 16.10.17 at USD 25

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Franklin Intl Core Div Tlt Idx ETF earns an Above Average Process Pillar rating. 

The most substantial contributor to the rating is the fund's excellent long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. This fund tracks an index, which also increases its process rating. Historical data, such as Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Lastly, the process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.5 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

 This strategy leans toward larger, higher-growth companies than its average peer in the Foreign Large Value Morningstar Category. Looking at additional factor exposure, this strategy has consistently favored high-quality stocks, including those with low financial leverage and solid returns on equity, compared with Morningstar Category peers during recent years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy also has held illiquid stocks, evidenced by holdings' lower trading volume in recent years over peers, resulting in high liquidity risk exposure. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. Similarly, in recent months, the strategy also had less exposure to the Liquidity factor than peers. In addition, this strategy has an underweight bias to the volatility factor, meaning investing in stocks that have a lower standard deviation of returns. These low-risk stocks are typically at their best when markets are not. Low volatility exposure contributes to limited loss on the downside at the cost of a lag in bull markets. In this month, however, the strategy had more exposure to the Volatility factor than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology and healthcare relative to the category average by 3.2 and 3.0 percentage points, respectively. The sectors with low exposure compared to category peers are energy and industrials, underweight the average by 4.7 and 3.8 percentage points of assets, respectively. The portfolio is positioned across 477 holdings and is relatively concentrated. Specifically, 16.4% of the fund’s assets are housed within the top 10 holdings, as opposed to the typical peer's 13.9%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 49% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Above Average

Process

Franklin Templeton’s  team is comparable to peers, resulting in an Average People Pillar rating. There are four managers listed on the fund: Hailey Harris, Basit Amin, Dina Ting, Joe Diederich. Together, they manage a total of 32 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

Franklin Templeton Investments, the asset-management arm of publicly traded but family managed Franklin Resources BEN, has been busy with acquisitions. The struggle in streamlining these disparate capabilities underpins its Average Parent rating. 
Franklin’s July 2020 acquisition of multiboutique manager Legg Mason remains its largest as of March 2023, but the firm has continued to grow through acquisitions. Its April 2022 and November 2022 purchases of Lexington Partners and Alcentra, respectively, make it one of world’s largest managers of alternative investments (with alts comprising USD 231 billion of its USD 1.4 trillion assets under management as of December 2022), while its July 2022 acquisition of O’Shaughnessy Asset Management adds a novel direct-indexing capability to its managed account offerings. These purchases, however, do little to alleviate the operational complexity of a firm with dozens of investment teams split by asset class, region, and investment platform.   
Although there are several standout strategies at the firm, many teams have struggled with personnel turnover, succession challenges, and unappealing performance patterns. Shepherding these geographically disparate capabilities, which have varying levels of centralization of distribution and risk management, shall be quite the challenge for the firm to manage.

Parent

Franklin International Core Dividend Tilt Index ETF

DIVI tracks an index of large- and mid-cap equities from developed markets outside North America. The index aims to maximize dividend yields through optimizations. 

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.

DIVI ETF: Decent Product, But Not A Perfect Buy

Franklin International Core Dividend Tilt Index ETF aims to provide an enhanced yield in developed markets with a portfolio heavy in Japan and financials. DIVI has outperformed its benchmark and five competitors over the last 18 months and has a lower fee. Data prior to August 2022 are irrelevant due to a reshuffling of the fund.

DIVI: A Leading International Dividend Fund

Xtrackers MSCI Europe Hedged Equity ETF

SPDR Portfolio Emerging Markets ETF

Although the natural inclination of retail investors is to invest in U.S.-listed stocks because they're the ones people are most familiar with, it makes sense to look beyond America's borders with global ETFs. Unlike most countries, home-country bias isn't nearly as big a deal because the U.S. market capitalization is $46.2 trillion, accounting for 42.5% of the world market cap.

Worldwide Winners: 3 All-World ETFs to Propel Your Profits

Franklin International Core Dividend Tilt Index ETF offers affordable developed markets equity exposure with a dividend-centric methodology. DIVI has consistently performed well compared to competitors and its category. DIVI presents an attractive investment opportunity for those seeking capital appreciation and income generation with a focus on high dividend-yielding international equities.

DIVI: A Good Choice For International Investing

DIVI seeks to replicate the performance of the Morningstar Developed Markets ex-North America Dividend Enhanced Select Index. It appears efficient in providing access to ex-North America developed equity markets with an emphasis on dividend yield. There's no question regarding its use in a diversified portfolio; I would, however, like to also talk about an alternative in this post.

DIVI: A Decent Dividend-Focused Global Market ETF

Franklin International Core Dividend Tilt Index ETF holds about 500 dividend stocks from developed countries. It was reshuffled in August 2022, older data are irrelevant to the current strategy. The portfolio is well-diversified across countries, sectors and holdings.

DIVI: A Promising New ETF In An Old Shell

As megacap US growth captures the limelight, major international indexes are at or near cycle highs. With a nearly 6% dividend yield in the past year, DIVI features a low valuation and modest expenses.

DIVI Is A Buy As Foreign Dividend Stocks Have Experienced A Stealthy Rally

First Trust DJ Global Select Dividend Index Fund

Invesco S&P 500 High Dividend Low Volatility ETF

SPDR Portfolio S&P 500 High Dividend ETF

SPDR S&P Global Dividend ETF

These high-dividend ETFs beat the S&P 500 in the past month, yield better than the benchmark treasury yield and have a lower P/E than the S&P 500.

5 Market-Beating High-Dividend ETFs to Consider

Yes, you read that right – the Franklin International Core Dividend Tilt Index ETF (DIVI) has seen a massive uptick in engagement from advisors, according to VettaFi's data, at 9,900% year-over-year.

Core Dividend ETF DIVI Sees 9,900% Engagement Jump

Franklin U.S. Core Dividend Tilt Index ETF

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.

Get Defensive With High Dividend ETF Duo DIVI, UDIV

Legg Mason Low Volatility High Dividend ETF

Legg Mason International Low Volatility High Dividend ETF

Franklin Templeton is continuing its quest to bring its breadth of asset management prowess to bear in the ETF space, with a new milestone coming for its Franklin U.S. Low Volatility High Dividend Index ETF (LVHD).

Franklin Templeton's LVHD Is the Latest $1 Billion ETF

First Trust NASDAQ Global Auto Index Fund

Fidelity MSCI Consumer Discretionary ETF

IM Rba Responsible Global Allocation ETF

Invesco S&P 500 Equal Weight Consumer Discretionary ETF

Direxion Daily Retail Bull 3X Shares

Vanguard Consumer Discretionary ETF

Direxion Daily Consumer Discretionary Bull 3X Shares

Consumer Discretionary Select Sector SPDR Fund

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

Bull vs. Bear: Will Momentum Carry for Consumer Discretionary Stocks?

DIVI is an international dividend ETF with a 5% plus yield. It is well-diversified, shows low historical volatility, and has outperformed competitors in the last 12 months.

DIVI: International Dividend Fund With A Low-Risk Profile

Dividends have picked up a lot of steam towards the end of 2022, and rightly so, offering current income to buoy investors' portfolios ahead of an uncertain new year. With the domestic U.S. market facing the risk of a rising rate-instigated recession next year, it could be a good moment to revisit ex-U.S.

Consider Foreign Equities With a Dividend Tilt in DIVI

Brandywineglobal Dynamic US Large Cap Value ETF

Franklin Liberty U.S. Core Bond ETF

Franklin Liberty High Yield Corporate ETF

Franklin U.S. Mid Cap Multifactor Index ETF

Martin Currie Sustainable International Equity ETF

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.

News for Franklin International Core Dividend Tilt Index ETF ETF (DIVI)