LVHD - AI Analysis

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Legg Mason Low Volatility High Dividend ETF (LVHD)

Rating:70Outperform

Price Target:

$45.00

The Legg Mason Low Volatility High Dividend ETF (LVHD) benefits from strong contributions by holdings like Johnson & Johnson (JNJ) and Medtronic (MDT), which showcase robust financial performance, strategic growth initiatives, and positive earnings call sentiment. However, weaker holdings such as Altria Group (MO) and Southern Co (SO), impacted by high leverage and operational challenges, slightly weigh on the fund's overall rating. A key risk factor is the ETF's exposure to companies with high debt levels, which could affect stability in certain market conditions.

Positive Factors

Strong Top Holdings

Several of the ETF's largest positions, such as Johnson & Johnson and American Electric Power, have shown strong year-to-date performance, supporting overall returns.

Low Expense Ratio

The ETF has a relatively low expense ratio, making it cost-effective compared to many other funds.

Defensive Sector Focus

The fund is heavily weighted in defensive sectors like Utilities and Consumer Defensive, which can provide stability during market volatility.

Negative Factors

High U.S. Concentration

With over 98% of its holdings in U.S. companies, the ETF lacks geographic diversification and is vulnerable to domestic market risks.

Sector Overweight in Utilities

Utilities make up a significant portion of the portfolio, which could limit growth potential in a rising interest rate environment.

Mixed Performance in Holdings

While some top holdings have performed well, others like Lockheed Martin and McDonald's have shown weaker year-to-date gains, potentially dragging on overall performance.

LVHD vs. SPDR S&P 500 ETF (SPY)

AUM585.92M

RegionNorth America

Expense Ratio0.27%

Beta0.35

IssuerFranklin

Inception DateDec 28, 2015

Dividend Yield3.37%

Asset ClassEquity

Index TrackedFranklin Low Volatility High Dividend Index (NTR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume39,511

30 Day Avg. Volume53,056

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

45.29

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering120

LVHD Summary

The Legg Mason Low Volatility High Dividend ETF (LVHD) is designed for investors who want steady income and lower risk. It follows the Franklin Low Volatility High Dividend Index, focusing on U.S. companies with strong financial health and consistent dividend payouts. The ETF includes well-known names like Johnson & Johnson and Chevron, and it prioritizes sectors like utilities and consumer defensive, which are generally more stable. This ETF might appeal to someone looking for reliable income and diversification in their portfolio. However, since it focuses heavily on dividend-paying stocks, its performance may lag during periods when growth stocks dominate the market.

How much will it cost me?The Legg Mason Low Volatility High Dividend ETF (LVHD) has an expense ratio of 0.27%, which means you’ll pay $2.70 per year for every $1,000 invested. This is slightly higher than average for passively managed ETFs because it uses a strategic approach to select lower-volatility, high-dividend stocks, requiring more active oversight. It’s designed to balance income and stability for investors.

What would affect this ETF?The LVHD ETF, with its focus on high-dividend, low-volatility stocks in sectors like Utilities and Consumer Defensive, could benefit from stable economic conditions and increased demand for income-generating investments, especially during periods of market uncertainty. However, it may face challenges if interest rates rise, as higher yields on bonds could make dividend-focused ETFs less attractive, or if sector-specific regulations negatively impact industries like Utilities or Real Estate. Its U.S.-centric exposure also ties its performance closely to the health of the domestic economy.

LVHD Top 10 Holdings

The LVHD ETF leans heavily into defensive sectors like utilities and consumer staples, with names like Southern Co and Duke Energy providing steady performance thanks to their reliable dividend yields and strategic investments. Johnson & Johnson and Medtronic are also contributing positively, benefiting from stable growth in healthcare. However, Chevron’s recent weakness in the energy sector has been a drag on the fund, while Altria Group faces challenges from declining cigarette volumes. With its U.S.-focused portfolio and emphasis on low-volatility dividend payers, the fund offers stability but lacks exposure to high-growth sectors like technology.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
JNJ	Johnson & Johnson	2.97%	$17.46M	$455.04B	17.95%	78 Outperform
CSCO	Cisco Systems	2.84%	$16.73M	$289.02B	31.73%	79 Outperform
CVX	Chevron	2.82%	$16.57M	$322.91B	3.04%	74 Outperform
MDT	Medtronic	2.64%	$15.56M	$116.34B	0.70%	71 Outperform
AEP	American Electric Power	2.62%	$15.45M	$64.37B	23.66%	72 Outperform
LMT	Lockheed Martin	2.59%	$15.24M	$113.82B	-9.80%	70 Outperform
SO	Southern Co	2.52%	$14.82M	$103.55B	6.21%	65 Neutral
MCD	McDonald's	2.52%	$14.81M	$212.96B	1.09%	70 Outperform
KO	Coca-Cola	2.50%	$14.74M	$296.38B	5.98%	78 Outperform
DUK	Duke Energy	2.50%	$14.70M	$96.66B	10.31%	75 Outperform

LVHD Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

40.99

Negative

100DMA

40.56

Negative

200DMA

39.85

Positive

Market Momentum

MACD

-0.12

Positive

RSI

36.30

Neutral

STOCH

8.92

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For LVHD, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 41.00, equal to the 50-day MA of 40.99, and equal to the 200-day MA of 39.85, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 36.30 is Neutral, neither overbought nor oversold. The STOCH value of 8.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LVHD.

LVHD Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
LVHD	―	―	$585.92M	0.27%	70 Outperform
SYLD	―	―	$868.03M	0.59%	68 Neutral
PLDR	―	―	$832.50M	0.60%	73 Outperform
HLAL	―	―	$738.48M	0.50%	77 Outperform
ABFL	―	―	$734.67M	0.49%	72 Outperform
PFM	―	―	$734.04M	0.52%	74 Outperform

Performance Comparison

LVHD

Legg Mason Low Volatility High Dividend ETF

40.21

1.91

4.99%

SYLD

Cambria Shareholder Yield ETF

―

PLDR

Putnam Sustainable Leaders ETF

―

HLAL

Wahed FTSE USA Shariah ETF

―

ABFL

Fcf Us Quality Etf

―

PFM

Invesco Dividend Achievers ETF

―

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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