XUDV: FRANKLIN U.S. DIVIDEND BOOSTER INDEX ETF
ETF Education Report: FRANKLIN U.S. DIVIDEND BOOSTER INDEX ETF (XUDV)
What this ETF is trying to do
The FRANKLIN U.S. DIVIDEND BOOSTER INDEX ETF (XUDV) is an exchange-traded fund listed on the NYSE. While the specific goal isn't detailed, its name and holdings suggest it focuses on U.S. companies that pay dividends. It holds a total of 96 different investments.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For XUDV, the year-to-date (YTD) price return is approximately 23.02%. The one-year price return is approximately 21.45%.
• Total Return: This includes the share price change plus any cash distributions paid out. The YTD total return is approximately 26.08%, and the one-year total return is approximately 27.24%.
To give you an idea of the price movement, the estimated price from roughly one year ago was $26.82. The current price is $32.58.
Top Holdings
The following are the top holdings in this portfolio (note that this is a partial list):
• PFIZER INC: 5.16%
• GENERAL MILLS INC: 5.06%
• THE KRAFT HEINZ CO: 4.75%
• VERIZON COMMUNICATIONS INC: 4.69%
• PAYCHEX INC: 4.60%
• UNITED PARCEL SERVICE INC CLASS B: 4.56%
• ALTRIA GROUP INC: 4.11%
• BEST BUY CO INC: 4.00%
• HP INC: 3.89%
• ARES: 3.75%
Income and distribution explanation
This ETF pays out cash to investors, known as distributions. The distribution yield is approximately 4.12%. This number describes the cash payments relative to the ETF's price. Over the last 12 months, there were 5 payouts. The distributions are usually paid quarterly, often on a Friday.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. It is important to note that a falling share price does not always mean NAV erosion is happening. For XUDV, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The ETF has shown positive price returns and total returns over the last year.
• It provides a distribution yield for investors seeking cash income.
Cons
• The income rating grade is a "C," which suggests the income level may not be considered high by all standards.
• The list of holdings provided is only a partial view of the total 96 investments.
Beginner takeaway
When looking at XUDV, remember that the price return and total return are different. The total return is a more complete picture because it includes the cash distributions you receive. Also, while a distribution yield provides income, it is not the same as total return. Always look at both to understand how an investment is performing.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | PFIZER INC | PFE | 5.16% |
| 2 | GENERAL MILLS INC | GIS | 5.06% |
| 3 | THE KRAFT HEINZ CO | KHC | 4.75% |
| 4 | VERIZON COMMUNICATIONS INC | VZ | 4.69% |
| 5 | PAYCHEX INC | PAYX | 4.60% |
| 6 | UNITED PARCEL SERVICE INC CLASS B | UPS | 4.56% |
| 7 | ALTRIA GROUP INC | MO | 4.11% |
| 8 | BEST BUY CO INC | BBY | 4.00% |
| 9 | HP INC | HPQ | 3.89% |
| 10 | n/a | ARES | 3.75% |