(DIVI) Franklin International Core - Ratings and Ratios

The Franklin International Core Dividend Tilt Index ETF (DIVI) is an exchange-traded fund that focuses on international developed markets, excluding North America, with a tilt towards dividend-paying stocks. By investing at least 80% of its assets in the component securities of its underlying index, the fund aims to replicate the performance of the Morningstar Developed Markets ex-North America Target Market Exposure Index with an optimization for higher dividend yield.

The underlying index is constructed using an optimization process that seeks to enhance dividend yield while controlling tracking error relative to the Parent Index. This approach allows the fund to potentially benefit from the dividend income generated by its constituent stocks, which are selected based on their dividend yield and other relevant factors. As a Foreign Large Value ETF, DIVI is positioned to capitalize on the value segment of international developed markets, which can provide a relatively stable source of returns through dividends.

Analyzing the technical data, we observe that the last price of DIVI is $35.56, slightly above its 20-day Simple Moving Average (SMA) of $35.38, indicating a positive short-term trend. The 50-day SMA at $33.84 and the 200-day SMA at $32.21 further support the notion of an uptrend, as the short-term price is above both medium and long-term averages. The Average True Range (ATR) of 0.32, or 0.91%, suggests relatively moderate volatility. Given these technical indicators, a potential forecast could involve a continued upward trend, with a possible target near the 52-week high of $36.04, provided that the dividend yield remains attractive and the overall market conditions remain favorable.

From a fundamental perspective, the Assets Under Management (AUM) of $1,561.19 million USD indicate a reasonable scale for the ETF, suggesting it has a certain level of investor acceptance and liquidity. Combining this with the technical analysis, a forecast for DIVI could involve a sustained appreciation in value, driven by its dividend tilt strategy and the overall trend in international developed markets. If the dividend yield continues to be a draw for investors and the broader market trends remain positive, DIVI could potentially reach new highs, making it a stock to watch for investors seeking international exposure with a value tilt.

Forecasting further, if the current uptrend continues and DIVI reaches its 52-week high of $36.04, it would represent a gain of approximately 1.3% from its current price. However, its crucial to monitor the dividend yield, the overall market conditions, and the tracking error to ensure that the fund remains aligned with its investment objectives. Investors should also keep an eye on the macroeconomic factors affecting international developed markets and the value segments performance.