LVHI Profile
Franklin International Low Volatility High Dividend Index ETF focuses on generating stable income through strategic investments in high-quality, dividend-paying stocks from developed markets outside the United States. The fund commits at least 80% of its net assets, including any borrowings for investment purposes, to securities that make up its underlying index. This approach aims to provide investors with a reliable income stream while minimizing the impact of market fluctuations.
The underlying index targets companies with strong profitability and relatively high dividend yields, or those expected to have high yields. By selecting stocks with lower price and earnings volatility, the fund seeks to enhance income stability and reduce investment risk. This strategy is particularly designed for investors seeking consistent returns from international markets while maintaining a conservative risk profile.
Additionally, the ETF is structured to mitigate exposure to exchange-rate fluctuations between the US dollar and other international currencies. This feature helps in preserving the value of investments and reducing the potential negative impact of currency volatility on returns. By focusing on developed markets, the fund also aims to leverage economic stability and growth opportunities outside the US.
Overall, the Franklin International Low Volatility High Dividend Index ETF offers a strategic investment option for those looking to benefit from international dividend income while managing both market and currency risks. Its emphasis on low volatility and high dividend yield positions it as a conservative yet lucrative choice in the global investment landscape.
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