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DIVY - ETF AI Analysis
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Sound Equity Income ETF (DIVY)
Rating:70Neutral
Price Target:―
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)
AUM28.98M
RegionNorth America
Expense Ratio0.45%
Beta0.66
IssuerSound Income Strategies
Inception DateDec 30, 2020
Dividend Yield3.46%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume2,786
30 Day Avg. Volume3,513
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
29.65Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering35
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, with Citigroup and Citizens Financial driving recent gains thanks to strong earnings and operational efficiency. Energy giant Enbridge adds stability with its attractive dividend yield, though its performance has been mixed. On the flip side, Perrigo is dragging the fund with steep declines tied to weak revenue and profitability. The ETF’s focus on high-dividend U.S. stocks provides steady income, but its concentration in financials and energy means sector-specific risks could weigh on future returns.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Omnicom Group | 5.26% | $1.52M | $24.79B | -4.00% | 73 Outperform | |
| Enbridge | 4.14% | $1.20M | $98.67B | 4.16% | 69 Neutral | |
| GlaxoSmithKline | 4.14% | $1.20M | $102.19B | 51.77% | 77 Outperform | |
| Citigroup | 4.12% | $1.19M | $217.07B | 68.91% | 68 Neutral | |
| Citizens Financial | 4.02% | $1.16M | $26.30B | 41.41% | 75 Outperform | |
| Eversource Energy | 3.85% | $1.12M | $25.37B | 21.55% | 66 Neutral | |
| United Parcel | 3.79% | $1.10M | $91.68B | -13.23% | 72 Outperform | |
| Perrigo Company | 3.70% | $1.07M | $2.02B | -39.70% | 49 Neutral | |
| Greif Class B | 3.45% | $1.00M | $3.57B | 30.68% | 71 Outperform | |
| Principal Financial | 3.37% | $977.02K | $20.15B | 20.16% | 76 Outperform |
DIVY Technical Analysis
Positive
―
Price Trends
25.94
Positive
25.79
Positive
25.05
Positive
Market Momentum
0.25
Negative
67.17
Neutral
80.50
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 26.49, equal to the 50-day MA of 25.94, and equal to the 200-day MA of 25.05, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 80.50 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
27.01
2.72
11.20%
FDIV
MarketDesk Focused U.S. Dividend ETF
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GEND
Genter Capital Dividend Income ETF
―
―
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VUS
Virtus US Dividend ETF
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―
―
PAYR
Federated Hermes Enhanced Income ETF
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JHDV
John Hancock U.S. High Dividend 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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