(DIVS) SmartETFs Dividend Builder - Ratings and Ratios

The SmartETFs Dividend Builder ETF (DIVS) is an actively managed exchange-traded fund that focuses on investing in a diversified portfolio of dividend-paying stocks with a strong potential for consistent dividend growth over the medium term, typically defined as three to five years. The funds investment strategy is centered around identifying companies that have a proven track record of increasing their dividend payouts, thereby providing a relatively stable source of income for investors.

The funds portfolio may comprise a mix of common stocks, preferred stocks, convertible securities, rights, and warrants, offering a broad exposure to various equity instruments. By targeting companies with a history of dividend growth, the fund aims to create a portfolio that not only generates regular income but also has the potential for long-term capital appreciation.

Analyzing the current market dynamics and the funds characteristics, we can observe that the ETF is trading at $30.45, slightly above its short-term and long-term moving averages (SMA20: $29.51, SMA50: $29.09, SMA200: $29.02), indicating a positive trend. The Average True Range (ATR) of 0.35, or 1.16%, suggests moderate volatility. Considering the 52-week high and low ($30.45 and $26.54, respectively), the current price is at its highest point over the past year, suggesting a strong upward momentum.

Given the funds Assets Under Management (AUM) of $41.03M USD, it has a reasonable size to be considered for investment, though its worth noting that larger AUM can sometimes be associated with higher liquidity and lower expense ratios. The ETFs investment strategy, focusing on dividend growth, is particularly appealing in a low-interest-rate environment or during periods of economic uncertainty, as it targets companies with a demonstrated ability to return value to shareholders.

Forecasting the funds performance involves analyzing both technical and fundamental data. The upward trend indicated by the SMA crossovers (short-term MA crossing above long-term MA) and the proximity to the 52-week high suggest a potential for continued growth, assuming the underlying companies continue to demonstrate strong dividend growth. If the dividend-paying companies within the portfolio maintain their growth trajectory and the overall market sentiment remains positive, the ETF could potentially reach new highs. A forecast based on the current trend and assuming a continuation of the dividend growth strategy could see the ETF testing new levels, potentially reaching $32.00 within the next 6-12 months, representing a 5% increase from current levels. However, this forecast is contingent upon the funds ability to continue identifying and investing in companies with robust dividend growth profiles and the overall market conditions remaining favorable.