LVHD - ETF AI Analysis

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Legg Mason Low Volatility High Dividend ETF (LVHD)

Rating:70Outperform

Price Target:―

LVHD, the Legg Mason Low Volatility High Dividend ETF, earns a solid overall rating thanks to high-quality, stable companies like Verizon, Medtronic, Cisco, and Johnson & Johnson, which combine strong financial performance, positive growth strategies, and supportive technical trends. These strengths are partly offset by holdings such as McDonald's, Altria, Procter & Gamble, and Chevron, where high leverage, bearish or mixed technical signals, and growth or revenue concerns introduce some risk. The main risk factor is that several core holdings face valuation and leverage pressures, which could limit upside and add volatility despite the fund’s income-focused, lower-volatility profile.

Positive Factors

Resilient Top Holdings

Most of the largest positions, such as Lockheed Martin, Chevron, Johnson & Johnson, and Coca-Cola, have shown solid gains this year, supporting the fund’s overall results.

Defensive Sector Tilt

Heavy exposure to traditionally defensive areas like utilities, consumer defensive, and real estate can help smooth returns during market volatility.

Moderate Expense Ratio

The fund’s fee is reasonable for an actively designed, factor-based ETF, allowing investors to keep more of their returns compared with many higher-cost products.

Negative Factors

U.S.-Only Geographic Exposure

With almost all assets in U.S. companies, the ETF offers little international diversification and is highly tied to the U.S. market.

Sector Concentration in Utilities and Defensive Names

A large share of the portfolio in utilities, consumer defensive, and real estate means performance is heavily influenced by these sectors and interest-rate conditions.

Mixed Short-Term Performance

While returns so far this year are positive, the ETF has shown some recent weakness over the last few months, indicating uneven short-term momentum.

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

AUM620.39M

RegionNorth America

Expense Ratio0.27%

Beta0.32

IssuerFranklin

Inception DateDec 28, 2015

Dividend Yield3.08%

Asset ClassEquity

Index TrackedFranklin Low Volatility High Dividend Index (NTR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume59,091

30 Day Avg. Volume52,138

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

46.56

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering115

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

LVHD Summary

LVHD is an exchange-traded fund that follows the Franklin Low Volatility High Dividend Index, focusing mainly on U.S. companies that pay relatively high dividends and have more stable stock prices. It holds well-known names like Chevron and Coca-Cola, along with many utility, consumer, and real estate companies that tend to be steadier and more income-focused. Someone might consider investing in LVHD if they want regular dividend income and a smoother ride than the overall stock market. A key risk is that it can still lose value, and its focus on dividend and defensive sectors may lag when fast-growing stocks lead 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

LVHD is leaning into classic U.S. dividend stalwarts, with defense name Lockheed Martin and energy giant Chevron doing much of the heavy lifting as their shares keep rising on solid cash flows and contract wins. Steady performers like Johnson & Johnson and Medtronic help smooth the ride, while Coca-Cola quietly adds dependable income. On the flip side, McDonald’s has been losing a bit of steam lately, acting as a mild drag. Overall, the fund tilts toward defensive, income-rich sectors rather than high-flying tech, keeping its story firmly U.S.-focused.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
VZ	Verizon	2.91%	$18.28M	$206.65B	18.96%	81 Outperform
KO	Coca-Cola	2.66%	$16.69M	$338.45B	13.95%	75 Outperform
AEP	American Electric Power	2.64%	$16.56M	$70.28B	27.14%	69 Neutral
MO	Altria Group	2.63%	$16.51M	$112.89B	27.49%	64 Neutral
JNJ	Johnson & Johnson	2.60%	$16.34M	$586.69B	57.07%	78 Outperform
LMT	Lockheed Martin	2.59%	$16.29M	$150.15B	52.28%	70 Outperform
CVX	Chevron	2.57%	$16.13M	$369.96B	17.66%	71 Outperform
MCD	McDonald's	2.57%	$16.12M	$233.29B	7.46%	65 Neutral
PG	Procter & Gamble	2.55%	$16.04M	$372.00B	-3.24%	69 Neutral
MDT	Medtronic	2.44%	$15.32M	$127.55B	12.01%	80 Outperform

LVHD Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

41.01

Positive

100DMA

40.50

Positive

200DMA

39.90

Positive

Market Momentum

MACD

0.87

Negative

RSI

79.83

Negative

STOCH

84.90

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For LVHD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 42.45, equal to the 50-day MA of 41.01, and equal to the 200-day MA of 39.90, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 79.83 is Negative, neither overbought nor oversold. The STOCH value of 84.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LVHD.

LVHD Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
LVHD	―	―	$620.39M	0.27%	―
SYLD	―	―	$930.62M	0.59%	―
PLDR	―	―	$813.93M	0.59%	―
AUSF	―	―	$812.40M	0.27%	―
ABFL	―	―	$794.64M	0.49%	―
PFM	―	―	$767.53M	0.52%	―

Performance Comparison

LVHD

Legg Mason Low Volatility High Dividend ETF

43.79

5.15

13.33%

SYLD

Cambria Shareholder Yield ETF

―

PLDR

Putnam Sustainable Leaders ETF

―

AUSF

Global X Adaptive U.S. Factor 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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