DIVY - ETF AI Analysis
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Sound Equity Income ETF (DIVY)
Rating:70Neutral
Price Target:―
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many different sectors, which can help reduce the impact if one industry runs into trouble.
Generally Strong Recent Performance
The ETF has shown solid gains so far this year and in recent months, suggesting its strategy has been working in the current market.
Multiple Strong Top Holdings
Several of the largest positions, such as Sonoco Products, TotalEnergies, GlaxoSmithKline, Citigroup, and Citizens Financial, have delivered strong year-to-date results that support the fund’s overall performance.
Negative Factors
High U.S. Market Concentration
With the vast majority of assets in U.S. stocks, the fund is heavily tied to the health of the U.S. market and offers limited global diversification.
Meaningful Exposure to Financials
A large slice of the portfolio is in financial companies, which can be more sensitive to interest rate changes and economic slowdowns.
Several Weak Top Holdings
Some major positions like Perrigo, Omnicom Group, and Eversource Energy have shown weak year-to-date performance, which can drag on the fund if this continues.
DIVY vs. SPDR S&P 500 ETF (SPY)
AUM28.06M
RegionNorth America
Expense Ratio0.45%
Beta0.67
IssuerSound Income Strategies
Inception DateDec 30, 2020
Dividend Yield3.13%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume4,036
30 Day Avg. Volume3,145
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
31.96Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering36
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
DIVY Summary
DIVY, the Sound Equity Income ETF, is built for investors who want regular income from stocks that pay higher-than-average dividends. It doesn’t track a specific index, but instead follows a high dividend income theme, picking companies mainly in the U.S. across many sectors like financials, health care, and energy. Well-known holdings include Citigroup and United Parcel Service (UPS). Someone might invest in DIVY to get diversified exposure to many dividend-paying companies in one fund while aiming for both income and some growth. A key risk is that stock prices and dividend payments can go up or down with the market.
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
DIVY leans heavily on U.S. financials, with Citizens Financial, Citigroup, and Principal Financial acting as key engines of recent gains as bank stocks keep climbing and their dividends do the heavy lifting. Health care is another pillar: GSK has been steadily rising on solid drug growth, while Perrigo is lagging and quietly tugging on returns. Industrial and energy names like Sonoco and TotalEnergies are also rising, giving the fund a cyclical tilt. Overall, it’s a U.S.-centric, dividend-first portfolio with a few underperformers but more winners than stragglers.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Omnicom Group | 4.56% | $1.28M | $21.89B | 0.59% | 73 Outperform | |
| Citizens Financial | 4.11% | $1.15M | $27.70B | 74.06% | 75 Outperform | |
| GlaxoSmithKline | 3.92% | $1.10M | $111.65B | 48.35% | 77 Outperform | |
| Perrigo Company | 3.81% | $1.07M | $1.61B | -53.03% | 49 Neutral | |
| Eversource Energy | 3.68% | $1.03M | $25.85B | 17.50% | 66 Neutral | |
| Citigroup | 3.67% | $1.03M | $220.38B | 88.54% | 68 Neutral | |
| United Parcel | 3.59% | $1.01M | $91.56B | 8.90% | 72 Outperform | |
| TotalEnergies SE | 3.54% | $991.63K | €163.84B | 49.50% | 78 Outperform | |
| Principal Financial | 3.45% | $965.53K | $21.02B | 29.33% | 76 Outperform | |
| Cisco Systems | 3.37% | $944.79K | $349.92B | 57.38% | 77 Outperform |
DIVY Technical Analysis
Positive
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Price Trends
27.84
Positive
27.30
Positive
26.31
Positive
Market Momentum
0.18
Negative
53.93
Neutral
30.34
Neutral
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 27.80, equal to the 50-day MA of 27.84, and equal to the 200-day MA of 26.31, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 30.34 is Neutral, 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
27.98
4.87
21.07%
FDIV
MarketDesk Focused U.S. Dividend ETF
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PAYR
Federated Hermes Enhanced Income ETF
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VUS
Virtus US 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.
DisclaimerThis 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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