Aims to deliver higher dividend yield than the Parent Index.
Overview
For nearly 20 years, market environments have encouraged yield-starved investors to look toward US equity income exchange-traded funds (ETFs).
However, many dividend income index investment strategies look quite different from the broad market, which can lead to significant underperformance when high dividend paying stocks are out of favor.
Franklin’s suite of Core Dividend Tilted ETFs track indexes which are constructed using a constrained optimization framework that aims to maximize dividend yield, improve diversification, mitigate active risk, and simplify replication.
Core Equity Dividend Tilt Index ETF Brochure
Learn about our index-tracking equity dividend ETFs across US, International Developed and Emerging Markets.
Equity Income
Core Equity Holding
A diversified portfolio construction tool available for international developed, U.S., or emerging markets equity.
Low Cost
UDIV, DIVI, and DIEM have expense ratios of 6, 9, and 19 basis points, respectively.
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Do DividENDS Always Justify the Means?
For nearly 20 years, market environments have encouraged yield-starved investors to look toward dividend-oriented equity ETFs.
For strategic asset allocation investors in particular, this presents a dilemma: How much active risk am I willing to accept in the pursuit of higher levels of income?1
This topic paper discusses:
- Common risks associated with dividend-oriented strategies
- The impacts of dividend investing on asset allocation
- How investors can take a more risk-aware approach when looking to boost yield relative to the broad market
For Financial Professionals Only
1. Deviating from the risk present in a fund’s benchmark in an effort to achieve higher returns is known as active risk.