If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD), a passively managed exchange traded fund launched on December 28, 2015.
Franklin U.S. Low Volatility High Dividend Index ETF targets above-average yields with low volatility, focusing on utilities, consumer staples, and real estate. LVHD offers a 3.3% dividend yield, outpacing most peers, but its total returns and Sharpe ratio have lagged the broader market and top dividend ETFs. The fund's defensive sector tilt and low beta provide downside protection but limit upside in risk-on markets, resulting in underperformance versus benchmarks.
Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is a smart beta exchange traded fund launched on 12/28/2015.
| NASDAQ (NMS) Exchange | US Country |
The company in question operates within the financial sector, focusing on investment services with a broad approach. It targets a substantial segment of the U.S. stock market by encompassing a wide variety of market capitalizations. Specifically, it is interested in the largest 3,000 U.S. stocks, as determined by the Solactive US Broad Market Index. This criterion for selection reflects the company's commitment to offering a diversified investment product that aims to mirror the vast landscape of the U.S. stock market. By mandating that at least 80% of its net assets, plus any borrowings for investment purposes, are invested in securities that compose the index, the company ensures a close correlation with the performance and risk profile of the broader U.S. stock market.
The company provides a focused yet diverse range of investment products aimed at capturing the breadth of the U.S. stock market:
A primary product of the company, these funds invest directly in the securities that make up the Solactive US Broad Market Index, thereby offering investors exposure to a comprehensive array of U.S. stocks. This includes everything from large-cap to small-cap stocks, making it a versatile investment choice for those looking to diversify their portfolio across the full spectrum of public U.S. companies.
In addition to traditional investment funds, the company provides services that allow for borrowing for investment purposes. This service is geared towards more aggressive investment strategies, enabling investors to leverage their positions in the stock market. It's a unique offering that complements their broad market funds by providing a means to potentially enhance returns through borrowed capital, albeit at a higher risk.