UDIV: Robust Performance, Healthy Factor Mix, Worth Shortlisting
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Vasily Zyryanov2.23K FollowersFollow5ShareSavePlay(9min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryThe 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.Other concerns influencing the rating include its rather small AUM of only $115.85 million and a fairly wide median bid/ask spread.I believe UDIV deserves to be shortlisted by investors seeking value and value-ish strategies, but sufficient arguments for a Buy rating are absent. Octavio Parra/iStock via Getty Images Today, I would like to initiate coverage of the Franklin US Core Dividend Tilt Index ETF (UDIV), with a Hold rating. I believe investors preferring value and value-ish strategies that do not venture deepThis article was written byVasily Zyryanov2.23K FollowersFollowVasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.