Franklin US Core Dividend Tilt Index ETF

UDIV

Market cap $119M

The Franklin US Core Dividend Tilt Index ETF is a passively managed vehicle tracking the Morningstar® US Dividend Enhanced Select IndexSM. UDIV has outperformed IVV and a few dividend ETFs since the strategy change in August 2022, capturing over 101% of IVV's upside. However, my analysis shows that compared to IVV, IT-heavy UDIV has weaker growth characteristics, which I believe will restrain its upside during the de-escalation rally.

I'm generally not a fan of chasing returns, whether they be in individual stocks or in mutual funds or exchange traded funds (ETFs).

This week's ETF Wrap takes you inside the rally in dividend-paying equity ETFs as investors seek to position for President-elect Donald Trump's second term in the White House.