ETF Research Center

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
Total	26.2 %
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 %

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	**	**	**	**	**	**	**
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	%

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.