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DIVY - AI Analysis
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Sound Equity Income ETF (DIVY)
Rating:67Neutral
Price Target:
$29.00
Positive Factors
Strong Top Holdings
Several of the largest positions, such as Citigroup and GlaxoSmithKline, have delivered strong year-to-date performance, supporting the fund’s returns.
Sector Diversification
The ETF spreads its investments across ten different sectors, reducing the risk of a downturn in any single industry.
Moderate Expense Ratio
The fund’s expense ratio of 0.45% is reasonable compared to many actively managed ETFs, helping investors retain more of their returns.
Negative Factors
Weak Recent Performance
The ETF has struggled in the short term, with negative returns over the past one and three months.
Over-Concentration in U.S. Market
With over 99% of its geographic exposure in the U.S., the fund lacks diversification across global markets.
Underperforming Holdings
Some top holdings, such as Perrigo and United Parcel, have posted negative year-to-date performance, dragging down overall returns.
DIVY vs. SPDR S&P 500 ETF (SPY)
AUM29.17M
RegionNorth America
Expense Ratio0.45%
Beta0.69
IssuerSound Income Strategies
Inception DateDec 30, 2020
Dividend Yield5.9%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume3,802
30 Day Avg. Volume3,645
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
29.00Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering36
DIVY Summary
The Sound Equity Income ETF (DIVY) is designed for investors who want steady income from companies that pay high dividends. It includes a mix of U.S.-based companies across sectors like financials, energy, and healthcare. Well-known holdings include Citigroup and Enbridge, which are recognized for their strong dividend payouts. This ETF is a good option for those looking to diversify their portfolio while earning consistent income. However, since it focuses on dividend-paying stocks, its performance can be impacted by market fluctuations or changes in dividend policies.
How much will it cost me?The Sound Equity Income ETF (DIVY) has an expense ratio of 0.45%, which means you’ll pay $4.50 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is actively managed, focusing on selecting high-dividend-yielding stocks rather than tracking a broad index. Active management often involves more research and decision-making, which can increase costs.
What would affect this ETF?The Sound Equity Income ETF (DIVY) could benefit from stable or rising interest rates, which often support financial sector profits, and increased demand for energy and utilities as global energy needs grow. However, it may face challenges if economic conditions weaken, as consumer cyclical and defensive sectors could experience reduced spending, or if regulatory changes impact dividend-paying companies in its portfolio. Its focus on U.S. companies ensures exposure to a stable market but also ties its performance closely to domestic economic trends.
DIVY Top 10 Holdings
The Sound Equity Income ETF (DIVY) leans heavily on financials and energy, with Citigroup and Enbridge playing pivotal roles in its performance. While Citigroup has shown steady gains, Enbridge’s mixed signals and regulatory hurdles have kept its momentum in check. Health care names like GlaxoSmithKline are rising stars, buoyed by strong earnings and strategic growth, while Perrigo is lagging due to profitability struggles. Utilities, led by Eversource Energy, add stability, but AT&T’s bearish technical trends and debt reliance weigh on the fund. Overall, DIVY’s U.S.-focused portfolio balances income generation with sector-specific challenges.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Citigroup | 5.26% | $1.53M | $181.84B | 56.73% | 67 Neutral | |
| Enbridge | 4.93% | $1.44M | $102.34B | 16.56% | 70 Outperform | |
| Eversource Energy | 4.42% | $1.29M | $27.71B | 15.74% | 64 Neutral | |
| GlaxoSmithKline | 3.70% | $1.08M | $86.97B | 15.63% | 72 Outperform | |
| Citizens Financial | 3.56% | $1.04M | $22.51B | 21.46% | 71 Outperform | |
| Perrigo Company | 3.45% | $1.01M | $2.95B | -14.86% | 51 Neutral | |
| Cisco Systems | 3.32% | $968.05K | $279.21B | 30.42% | 79 Outperform | |
| AT&T | 3.30% | $963.39K | $179.76B | 15.87% | 72 Outperform | |
| HF Sinclair Corporation | 3.26% | $949.81K | $10.20B | 27.66% | 65 Neutral | |
| United Parcel | 3.21% | $937.62K | $73.93B | -33.57% | 74 Outperform |
DIVY Technical Analysis
Positive
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Price Trends
25.86
Positive
25.61
Positive
25.06
Positive
Market Momentum
0.02
Negative
57.44
Neutral
94.29
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DIVY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 25.74, equal to the 50-day MA of 25.86, and equal to the 200-day MA of 25.06, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 94.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DIVY.
DIVY Peer Comparison
Comparison Results
Performance Comparison
DIVY
Sound Equity Income ETF
26.04
0.88
3.50%
FDV
Federated Hermes U.S. Strategic Dividend ETF
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TBG
TBG Dividend Focus ETF
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FDIV
MarketDesk Focused U.S. Dividend ETF
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JHDV
John Hancock U.S. High Dividend ETF
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GEND
Genter Capital Dividend Income ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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