ETF Research Center

The Legg Mason International Low Volatility High Dividend ETF tracks an all-cap index of developed ex-U.S. stocks. Stocks are selected and weighted to emphasize profitability, high dividends, low price volatility and low earnings volatility.

FUND BASICS
Category	International Equities
Fund Sponsor	Legg Mason
Website	www.leggmasonetf.com
Inception date	Jul 27, 2016
Assets (mns)	$56
Currency	USD
Expense ratio	40 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Multi-Factor
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	111
Wgt avg mkt cap (mns)	$43,046
Large cap (>$10bn)	84.0%
Mid cap ($2-10bn)	14.2%
Small cap (<$2bn)	1.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	24.8 %
TELEFONICA SA	2.6 %
COMMONWEALTH BANK OF AUSTRAL	2.6 %
NATIONAL GRID PLC	2.5 %
NTT DOCOMO, INC.	2.5 %
TOYOTA MOTOR CORP	2.5 %
BT GROUP PLC	2.5 %
ENEL SPA	2.4 %
JAPAN TOBACCO INC	2.4 %
CAN IMPERIAL BK OF COMMERCE	2.4 %
BAYERISCHE MOTOREN WERKE AG	2.4 %

TOP COUNTRY EXPOSURE
	BRITAIN	14.6 %
	JAPAN	14.1 %
	SPAIN	11.8 %
	CANADA	9.0 %
	SWITZERLAND	8.3 %
	AUSTRALIA	7.7 %
	ITALY	6.7 %
	GERMANY	5.1 %
	SINGAPORE	4.9 %
	SWEDEN	4.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
17.3%	13.7%	--	--	8.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.49	50%
MSCI EAFE	0.62	68%
MSCI Emg. Mkts.	0.39	42%

Technical Indicators
Recent close	$26.47
30d moving avg.	$27.51
Annualized volatility	8.4%
Short interest (ETF)	0.0%
Relative strength (RSI)	37

Liquidity measures
Avg. volume (thou.)	11
Turnover	0.5%
Bid/Ask (% of price)	0.21%
ADV underlying (mns)	$4,976

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Legg Mason International Low Volatility High Dividend ETF based on the alternatives' overlap in portfolio holdings with LVHI. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

LVHI

Expense:

40 bp

ALTAR Score™:

9.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH LVHI
Ticker	Fund Name	Overlap¹ vs LVHI (%)	Expense ratio (bp)	Savings vs LVHI (bp)	ALTAR Score™ (%)	ALTAR vs LVHI (%)
CID	Victory CEMP International High Div Volatility Wtd	31.9	45	-5	8.8	-0.6
DOO	WisdomTree Int'l Dividend Ex-Financials	30.0	58	-18	8.0	-1.4
IDV	iShares DJ Int'l Select Dividend	29.1	49	-9	8.4	-1.0
EFAS	Global X MSCI SuperDividend EAFE	28.8	55	-15	8.7	-0.7
HDEF	Xtrackers MSCI EAFE High Div Yld Hedged	28.5	20	20	8.7	-0.7
IDHD	Invesco S&P Intl Developed High Div Low Volatility	26.0	30	10	6.4	-3.0
DTH	WisdomTree DEFA Equity Income	24.8	58	-18	8.5	-0.9
IDOG	ALPS International Sector Dividend Dogs	24.4	50	-10	7.4	-2.0
FGD	First Trust DJ Global Select Dividend	21.9	58	-18	9.2	-0.2
RIDV	Invesco International Ultra Dividend Revenue ETF	21.7	42	-2	9.1	-0.3
EFV	iShares MSCI EAFE Value	21.3	38	2	9.0	-0.4
FIDI	Fidelity International High Dividend	21.1	39	1	10.1	+0.7
DOL	WisdomTree Int'l Large Cap Dividend	20.5	48	-8	7.7	-1.7
DWX	SPDR S&P International Dividend ETF	20.0	45	-5	7.0	-2.4
IQDE	FlexShares Int'l Quality Dividend Defensive	19.3	47	-7	9.6	+0.2
IDY	Pacific Global International Equity Income	19.2	39	1	8.2	-1.2
FID	First Trust S&P International Dividend Aristocrats	18.1	60	-20	7.1	-2.3
HDAW	Xtrackers MSCI All World ex US High Div Yield	18.0	20	20	10.0	+0.6
OEUR	O'Shares FTSE Europe Quality Dividend	17.9	48	-8	6.4	-3.0
IQDF	FlexShares Int'l Quality Dividend	17.7	47	-7	9.5	+0.1

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

	2014	2015	2016	2017	2018	2019E	2020E
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

	2018	2019E	2020E
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 International Low Volatility High Dividend
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.0	%
Divided by: Fwd. P/BV	1.3	x
Less: Expense ratio	40	bp
Equals: ALTAR Score	9.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.75	CATEGORY AVERAGE	1.63

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.