LVHI ETF — Holdings & Analysis

The Franklin International Low Volatility High Dividend Index ETF (LVHI) is a $4.53 billion fund that seeks to track the Franklin International Low Volatility High Dividend Hedged Index.

LVHI focuses on developed markets outside the U.S., selecting companies with high dividend yields and low price and earnings volatility. With an expense ratio of 0.40%, LVHI offers exposure to international equities with a tilt towards value and stability, making it attractive for investors seeking income and downside protection.

Franklin International Low Volatility High Dividend Index ETF (LVHI) ETF — Price, Holdings & Analysis

The Franklin International Low Volatility High Dividend Index ETF (LVHI) is a $4.53 billion fund that seeks to track the Franklin International Low Volatility High Dividend Hedged Index. LVHI focuses on developed markets outside the U.S., selecting companies with high dividend yields and low price and earnings volatility. With an expense ratio of 0.40%, LVHI offers exposure to international equities with a tilt towards value and stability, making it attractive for investors seeking income and downside protection.

ETF Overview

Seeks to track the investment results of the underlying index, Franklin International Low Volatility High Dividend Hedged Index, which is composed of equity securities of developed markets outside the United States with relatively high yield and low price and earnings volatility.

LVHI aims to provide investors with a combination of income and capital appreciation by investing in international equities that exhibit both high dividend yields and low volatility. The fund tracks the Franklin International Low Volatility High Dividend Hedged Index, which screens for companies in developed markets outside the United States that meet specific criteria for dividend yield and volatility. The ETF's holdings are weighted based on a combination of these factors, resulting in a portfolio that is diversified across sectors and countries. The fund's top holdings include Canadian Natural Resources Ltd (2.95%), Suncor Energy Inc (2.62%), and Novartis AG Registered Shares (2.40%). Sector allocation is heavily weighted in Financial Services (23.2%), Energy (16.2%), and Industrials (14.7%). Country exposure is diversified across Canada (15.8%), Japan (14.4%), and the United Kingdom (14.4%). This strategy makes LVHI suitable for investors seeking international equity exposure with a focus on income and reduced volatility.

Risk Metrics

LVHI, while designed to mitigate volatility, still carries inherent risks. Its concentration in Financial Services (23.2%) and Energy (16.2%) sectors means that the fund's performance is sensitive to the performance of these sectors. Country exposure is also concentrated in Canada, Japan, and the United Kingdom, exposing the fund to specific economic and political risks within those regions. With a 3-year beta of 0.50, LVHI is less volatile than the overall market, but it will still experience fluctuations. The expense ratio of 0.40% will create a slight drag on performance over time. Investors should be aware of these factors when considering LVHI for their portfolios. Past performance does not guarantee future results.

Expense Ratio

0.40%

What does LVHI hold?

Holding	Weight
Canadian Natural Resources Ltd (CNQ.TO)	2.95%
Suncor Energy Inc (SU.TO)	2.62%
Novartis AG Registered Shares (NOVN.SW)	2.40%
Shell PLC (SHEL.L)	2.38%
Mitsubishi Corp (8058.T)	2.33%
BHP Group Ltd (BHP.AX)	2.16%
Rio Tinto PLC Ordinary Shares (RIO.L)	2.16%
Intesa Sanpaolo (ISP.MI)	2.13%
Roche Holding AG (ROG.SW)	2.09%
GSK PLC (GSK.L)	2.08%

How Is the Fund Allocated?

Sector	Weight
Financial Services	23.2%
Energy	16.2%
Industrials	14.7%
Utilities	9.4%
Consumer Defensive	8.1%
Healthcare	7.9%
Basic Materials	6.4%
Consumer Cyclical	6.2%
Communication Services	5.8%
Real Estate	2.0%

Country	Weight
Canada	15.8%
Japan	14.4%
United Kingdom	14.4%
France	9.6%
Switzerland	8.7%
Australia	7.3%
Italy	6.4%
Germany	5.0%
Singapore	3.8%
Sweden	2.8%

Dividend Yield

3.56%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

Putnam PanAgora ESG Emerging Markets Equity ETF (PPEM) (Equity) — 0.60% expense ratio
Franklin FTSE Australia ETF (FLAU) (Equity) — 0.09% expense ratio
Franklin U.S. Low Volatility ETF (FLLV) (Equity) — 0.29% expense ratio
Franklin U.S. Core Bond ETF (FLCB) (Fixed Income) — 0.15% expense ratio
Putnam Sustainable Future ETF (PFUT) (Equity) — 0.65% expense ratio
Franklin Short Duration U.S. Government ETF (FTSD) (Fixed Income) — 0.25% expense ratio

Risk Metrics

Beta: 0.50

Questions & Answers

What is LVHI and what does it track?

The Franklin International Low Volatility High Dividend Index ETF (LVHI) is an exchange-traded fund that aims to replicate the performance of the Franklin International Low Volatility High Dividend Hedged Index.

This index is composed of equity securities from developed markets outside the United States. LVHI focuses on companies that exhibit both high dividend yields and low price and earnings volatility.

What is the expense ratio for LVHI?

The expense ratio for LVHI is 0.40%. This means that for every $10,000 invested in the fund, investors will pay $40 in annual fees to cover the fund's operating expenses.

While 0.40% is not the lowest available, it is competitive within the international equity ETF category.

What are the top holdings in LVHI?

As of today, the top holdings in LVHI include Canadian Natural Resources Ltd (2.95%), Suncor Energy Inc (2.62%), and Novartis AG Registered Shares (2.40%). Other significant holdings include Shell PLC (2.38%) and Mitsubishi Corp (2.33%).

These top holdings reflect the fund's focus on companies with stable earnings and consistent dividend payouts.

Is LVHI a good long-term investment?

Whether LVHI is a suitable long-term investment depends on an investor's individual circumstances and investment goals. LVHI's focus on low volatility and high dividend yield may appeal to investors seeking income and downside protection.

However, its concentration in certain sectors and countries could impact its long-term performance.

How does LVHI compare to similar ETFs?

LVHI distinguishes itself through its specific focus on international equities with both low volatility and high dividend yields. Compared to broader international equity ETFs, LVHI may offer a more defensive profile.

Its expense ratio of 0.40% is competitive within its category. Funds with similar strategies may have different expense ratios or slightly different methodologies for selecting and weighting holdings.

Does LVHI pay dividends?

Yes, LVHI is designed to provide investors with dividend income. As of today, LVHI has a dividend yield of 3.56%. This means that investors can expect to receive approximately 3.56% of their investment in annual dividend payments.

The actual dividend yield may vary over time depending on the performance of the underlying holdings and the fund's distribution policy.