Legg Mason Low Volatility High Dividend ETF
ALTAR
Score™
7.0% info Recommen-
dation
OVERWEIGHT
2020E    2021E
P/E
ratio
14.5x P/Sales
ratio
1.6x
P/BV
ratio
2.0x Div.
yield
4.1%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The Legg Mason Low Volatility High Dividend ETF tracks an index of roughly 50-100 US stocks selected from across the market cap spectrum. Stocks are selected and weighted to emphasize profitability, high dividends, low price volatility and low earnings volatility.

FUND BASICS
Category US Equities
Fund Sponsor Legg Mason
Website www.leggmasonetf.com
Inception date Dec 29, 2015
Assets (mns) $812
Currency USD
Expense ratio 27 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-End Investment Company
Custodian
Weighting Multi-Factor
Index replication
Uses derivatives No
Options available No

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 82
Wgt avg mkt cap (mns) $70,731
Large cap (>$10bn) 87.7%
Mid cap ($2-10bn) 11.3%
Small cap (<$2bn) 1.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
EATON CORP PLC 2.9 %
CROWN CASTLE INTL CORP 2.8 %
DUKE ENERGY CORP 2.7 %
PEPSICO INC 2.7 %
XCEL ENERGY INC 2.6 %
GENERAL MILLS INC 2.6 %
AMERICAN ELECTRIC POWER 2.5 %
AT&T INC 2.5 %
MERCK & CO. INC. 2.4 %
VERIZON COMMUNICATIONS INC 2.4 %
Total 26.2 %

TOP COUNTRY EXPOSURE
UNITED STATES 95.5 %
IRELAND 2.9 %
BRITAIN 1.0 %








HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru January 31)
Year-to-date 1 year 5 years 10 years Since Incep.
-0.7% 13.8% -- -- 11.4%

Market Correlations
versus... Beta R-squared
S&P500 0.64 71%
MSCI EAFE 0.54 43%
MSCI Emg. Mkts. 0.36 33%

Technical Indicators
Recent close $31.10
30d moving avg. $34.18
Annualized volatility 9.2%
Short interest (ETF) 0.3%
Short interest (Underlying) 3.9%
Relative strength (RSI) 37

Liquidity measures
Avg. volume (thou.) 171
Turnover 0.7%
Bid/Ask (% of price) 0.16%
ADV underlying (mns) $13,995

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the Legg Mason Low Volatility High Dividend ETF ETF based on the alternatives' overlap in portfolio holdings with LVHD. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: LVHD Expense: 27 bp ALTAR Score™: 7.0%


ALTERNATIVE ETFs BASED ON OVERLAP WITH LVHD
Ticker Fund
Name
Overlap1
vs LVHD
(%)
Expense
ratio
(bp)
Savings
vs LVHD
(bp)
ALTAR
Score™
(%)
ALTAR
vs LVHD
(%)
CDC Victory CEMP US EQ Income Enhanced Volatility Wtd Index ETF 32.5 35 -8 8.8 +1.8
CDL Victory CEMP US Large Cap High Dividend Volatility Wtd Idx E 32.5 35 -8 8.8 +1.8
DVY iShares Select Dividend ETF 31.2 39 -12 8.5 +1.5
HDV iShares Core High Dividend ETF 28.9 8 19 7.5 +0.5
FXU First Trust Utilities AlphaDEX Fund 28.3 63 -36 5.1 -1.9
DHS WisdomTree U.S. High Dividend Fund 28.1 38 -11 8.6 +1.5
OUSA O'Shares FTSE US Quality Dividend ETF 27.7 48 -21 6.2 -0.9
OYLD Invesco Russell 1000 Yield Factor ETF 27.5 19 8 6.7 -0.3
DURA VanEck Vectors Morningstar Durable Dividend ETF 27.5 29 -2 7.2 +0.1
SPHD Invesco S&P 500 High Dividend Low Volatility ETF 27.3 30 -3 8.8 +1.8
JHMU John Hancock Multifactor Utilities ETF 27.2 40 -13 5.3 -1.7
VPU Vanguard Utilities Index Fund 27.0 10 17 5.2 -1.9
FUTY Fidelity MSCI Utilities Index ETF 27.0 8 19 5.2 -1.8
RYU Invesco S&P 500 Equal Weight Utilities ETF 26.5 40 -13 5.3 -1.8
SPLV Invesco S&P 500 Low Volatility ETF 26.5 25 2 5.5 -1.6
LVHB Innovator Lunt Low Vol/High Beta Tactical ETF 26.3 49 -22 5.2 -1.8
IDU iShares U.S. Utilities ETF 26.3 43 -16 4.9 -2.1
XLU Utilities Select Sector SPDR Fund 26.2 13 14 5.2 -1.8
VYM Vanguard High Dividend Yield Index ETF 25.4 6 21 7.6 +0.5

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2015 2016 2017 2018 2019 2020E 2021E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2019 2020E 2021E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
Legg Mason Low Volatility High Dividend ETF
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 14.7 %
Divided by: Fwd. P/BV 2.0 x
Less: Expense ratio 27 bp
Equals: ALTAR Score 7.0 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.73 CATEGORY
AVERAGE
1.56
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.