LVHD - ETF AI Analysis

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Legg Mason Low Volatility High Dividend ETF (LVHD)

Rating:70Outperform

Price Target:―

The Legg Mason Low Volatility High Dividend ETF (LVHD) benefits from strong contributions by holdings like Medtronic (MDT) and Johnson & Johnson (JNJ), which are supported by robust financial performance, positive earnings outlooks, and strategic growth initiatives. However, weaker performers like McDonald's (MCD), which faces financial risks and challenges in key markets, and Duke Energy (DUK), with valuation concerns and liquidity challenges, slightly temper the overall rating. The ETF's diversified holdings help mitigate risks, but investors should note potential vulnerabilities in sectors with valuation or market-specific pressures.

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)

AUM584.80M

RegionNorth America

Expense Ratio0.27%

Beta0.31

IssuerFranklin

Inception DateDec 28, 2015

Dividend Yield3.29%

Asset ClassEquity

Index TrackedFranklin Low Volatility High Dividend Index (NTR)

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume56,777

30 Day Avg. Volume53,357

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

45.67

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering118

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 on defensive sectors like Utilities and Consumer Defensive, which together make up nearly half of its portfolio. Johnson & Johnson and Medtronic are steady performers, providing a healthy boost to the fund with their strong financials and bullish outlooks. Cisco is also rising, thanks to its strategic focus on AI and robust shareholder returns. On the flip side, Procter & Gamble and Duke Energy are lagging, weighed down by valuation concerns and liquidity challenges. With a U.S.-centric portfolio, this ETF prioritizes stability and income but faces mixed results from its holdings.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CSCO	Cisco Systems	2.95%	$17.08M	$300.44B	27.95%	77 Outperform
MDT	Medtronic	2.72%	$15.75M	$132.48B	19.41%	74 Outperform
CVX	Chevron	2.72%	$15.74M	$307.14B	-5.96%	74 Outperform
JNJ	Johnson & Johnson	2.69%	$15.56M	$494.72B	32.65%	78 Outperform
AEP	American Electric Power	2.62%	$15.20M	$64.36B	22.69%	72 Outperform
KO	Coca-Cola	2.61%	$15.11M	$309.50B	13.04%	78 Outperform
VZ	Verizon	2.58%	$14.96M	$171.78B	-7.09%	72 Outperform
MCD	McDonald's	2.55%	$14.79M	$216.19B	3.80%	65 Neutral
USB	US Bancorp	2.53%	$14.64M	$76.80B	-6.37%	75 Outperform
MO	Altria Group	2.48%	$14.37M	$99.28B	3.43%	64 Neutral

LVHD Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

40.42

Positive

100DMA

40.38

Positive

200DMA

39.70

Positive

Market Momentum

MACD

0.06

Negative

RSI

52.80

Neutral

STOCH

84.30

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 40.09, equal to the 50-day MA of 40.42, and equal to the 200-day MA of 39.70, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 84.30 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	―	―	$584.80M	0.27%	―
SYLD	―	―	$882.00M	0.59%	―
PLDR	―	―	$856.80M	0.60%	―
ABFL	―	―	$781.14M	0.49%	―
PFM	―	―	$746.41M	0.52%	―
AUSF	―	―	$736.74M	0.27%	―

Performance Comparison

LVHD

Legg Mason Low Volatility High Dividend ETF

40.45

1.31

3.35%

SYLD

Cambria Shareholder Yield ETF

―

PLDR

Putnam Sustainable Leaders ETF

―

ABFL

Fcf Us Quality Etf

―

PFM

Invesco Dividend Achievers ETF

―

AUSF

Global X Adaptive U.S. Factor 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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