Franklin U.S. Core Dividend Tilt Index ETF (UDIV)

UDIV: Robust Performance, Healthy Factor Mix, Worth Shortlisting

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.