DIVY - ETF AI Analysis

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Sound Equity Income ETF (DIVY)

Rating:70Neutral

Price Target:―

DIVY, the Sound Equity Income ETF, has a solid overall rating, mainly supported by strong, income-focused holdings like GSK, which combines healthy growth in specialty medicines with reasonable valuation and a solid dividend, and Enbridge, which offers attractive dividends and resilient operations despite higher leverage. Financial names like Citizens Financial Group and Citigroup also add stability through strong earnings and cash generation, though they face some growth and pricing challenges. The fund’s rating is held back somewhat by weaker positions like Perrigo, which struggles with declining revenue and a bearish trend, and by risks tied to leveraged, regulated utilities such as Eversource Energy.

Positive Factors

Broad Sector Diversification

The fund spreads its investments across many different sectors, which can help reduce the impact if any one industry struggles.

Mostly Positive Recent Performance

The ETF has shown steady gains over the past month, three months, and year-to-date, indicating generally supportive recent market conditions for its strategy.

Several Strong Top Holdings

A number of the largest positions, such as Eversource Energy, Perrigo, United Parcel, Greif, and Sonoco Products, have delivered strong year-to-date performance that supports the fund’s returns.

Negative Factors

High U.S. Concentration

With the vast majority of assets in U.S. companies, the fund is heavily tied to the health of the U.S. market and offers limited international diversification.

Mixed Performance Among Top Holdings

Some major positions like Omnicom Group, Enbridge, GlaxoSmithKline, and Citigroup have shown weak year-to-date performance, which can drag on overall results.

Moderate Expense Ratio

The fund’s expense ratio is not especially low, meaning fees may take a noticeable bite out of returns compared with the cheapest ETFs.

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

AUM27.60M

RegionNorth America

Expense Ratio0.45%

Beta0.69

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. Volume3,245

30 Day Avg. Volume3,485

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

34.06

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering36

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

DIVY Summary

The Sound Equity Income ETF (DIVY) is an actively managed fund that focuses on companies that pay relatively high and steady dividends, rather than tracking a specific index. It mainly holds U.S. stocks across many sectors, including financials, health care, energy, and utilities. Well-known holdings include Citigroup and United Parcel Service (UPS). Someone might invest in DIVY to seek regular income from dividends while still having the chance for long-term growth and diversification across industries. A key risk is that stock prices and dividend payments can go up or down with the overall market and company performance.

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 on a mix of steady dividend workhorses rather than flashy growth names, with all its top holdings rooted in North America and a clear tilt toward U.S. income plays. Packaging names like Sonoco and Greif have been rising nicely, quietly pulling their weight for the fund, while GSK’s strong run in specialty medicines adds a healthy boost from the pharma side. Financials such as Citizens Financial and Citigroup are more mixed, with Citi losing a bit of steam. Perrigo, meanwhile, has been lagging, acting as a small drag on an otherwise resilient income-focused lineup.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
OMC	Omnicom Group	4.78%	$1.34M	$24.18B	-1.98%	73 Outperform
ES	Eversource Energy	4.15%	$1.16M	$27.49B	21.79%	66 Neutral
GSK	GlaxoSmithKline	3.97%	$1.11M	$108.66B	38.36%	77 Outperform
CFG	Citizens Financial	3.78%	$1.06M	$24.20B	43.32%	75 Outperform
ENB	Enbridge	3.78%	$1.06M	$117.04B	26.04%	69 Neutral
SON	Sonoco Products	3.64%	$1.02M	$5.20B	17.96%	63 Neutral
UPS	United Parcel	3.52%	$987.64K	$83.12B	-15.05%	72 Outperform
T	AT&T	3.38%	$948.35K	$191.75B	4.98%	71 Outperform
AVA	Avista	3.29%	$923.96K	$3.23B	0.67%	77 Outperform
TTE	TotalEnergies SE	3.29%	$922.62K	€150.58B	27.15%	78 Outperform

DIVY Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

27.82

Negative

100DMA

26.77

Positive

200DMA

25.99

Positive

Market Momentum

MACD

-0.24

Positive

RSI

29.34

Positive

STOCH

3.04

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DIVY, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 28.37, equal to the 50-day MA of 27.82, and equal to the 200-day MA of 25.99, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 29.34 is Positive, neither overbought nor oversold. The STOCH value of 3.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DIVY.

DIVY Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
DIVY	―	―	$27.60M	0.45%	70 Neutral
FDIV	―	―	$72.07M	0.35%	71 Outperform
PAYR	―	―	$22.94M	0.40%	65 Neutral
VUS	―	―	$16.89M	0.25%	72 Outperform
JHDV	―	―	$9.07M	0.34%	73 Outperform
GEND	―	―	$3.97M	0.38%	70 Outperform

Performance Comparison

DIVY

Sound Equity Income ETF

26.92

1.95

7.81%

FDIV

MarketDesk Focused U.S. Dividend ETF

―

PAYR

Federated Hermes Enhanced Income ETF

―

VUS

Virtus US Dividend ETF

―

JHDV

John Hancock U.S. High Dividend ETF

―

GEND

Genter Capital Dividend Income 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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