ADIV

Asia Pacific Dividend Builder ETF

The Asia Pacific region, home to a third of the world’s population, is one of the fastest growing regions on Earth. ADIV seeks to harness that growth and turn it into an opportunity for income creation.

ADIV focuses on high-quality dividend growth, as opposed to high yield.

Over the last two decades, Asian economies have both diversified and matured, leading to a plethora of high-quality income opportunities.

ADIV provides access to the best dividend investment ideas in the Asia Pacific region in a single transaction. ADIV generally holds 35 approximately equally weighted positions.

FUND DESCRIPTION


The SmartETFs Asia Pacific Dividend Builder ETF is designed to provide investors with exposure to high quality dividend growers in one of the world’s fastest growing regions, the Asia Pacific region.

The Fund aims to provide investors with exposure to Asian equities through a high conviction, low turnover portfolio of consistently profitable dividend-paying companies.

Focus on consistent high return on capital

We believe consistent high return on capital is a good indication of a company’s durability, and its ability to pay healthy dividends. The Fund invests in companies that are unusually consistent in generating returns on capital above their cost of capital.

Growth and income

Our approach to dividend investing is to focus on companies that can sustainably grow their dividend into the future, rather than simply looking for companies with a high dividend yield.

High conviction

The Fund typically invests in 35 companies, with each company having an equal weighting. This helps provide a good balance between the benefits of diversification while also allowing each company to add meaningfully to performance. We don’t have a long tail of small positions and by definition we can never just ‘hug’ the benchmark index.

Fundamentally driven

We focus on ‘bottom-up’ stock selection rather than trying to make decisions based on an expected outlook for the region’s economy. We like to invest in good companies that have, in the short term, fallen out of favor, but that have previously shown an ability to weather most economic environments over time.

Low turnover

We prefer to invest over the long term. We also recognize the increased costs of trading in and out of companies unnecessarily. Typically we will hold a company in the portfolio for between three and five years.

Repeatable and independent

Edmund Harriss and analyst Mark Hammonds have managed the Fund since launch. They have developed an investment process that is clear, robust, transparent, and scalable. Their approach filters out much of the noise and hype that surrounds companies to focus on the true signals that drive company valuations. By performing their own company research and analysis, using their own proprietary modeling systems, the managers try to avoid some of the behavioral biases associated with being unduly influenced by market sentiment.

The Fund is designed to give investors exposure to one of the world’s fastest growing regions, which will have a significant influence over our economic future. However, with change and opportunity comes risk. We seek to manage this by investing in companies that:

  1. have a proven record of generating returns in excess of the cost of capital;
  2. can successfully reinvest those returns in order to grow their business; and,
  3. are committed to paying dividends to shareholders that can grow over time.

OBJECTIVE


The SmartETFs Asia Pacific Dividend Builder ETF’s investment objective is to provide investors with dividend income and long-term capital growth.

PERFORMANCE
Performance data over 1 year is annualized
As of Month End 04/30/2022FUND NAVMARKET PRICEINDEX
Year to Date-9.53%-10.34%-11.66%
1 Year-9.11%-10.33%-21.35%
3 Year5.85%5.68%2.60%
5 Year6.84%6.73%4.76%
10 Year6.70%6.64%4.78%

As of Quarter End 03/31/2022FUND NAVMARKET PRICEINDEX
Year to Date-4.94%-5.59%-6.20%
1 Year-2.84%-3.75%-13.82%
3 Year8.52%8.42%5.32%
5 Year8.18%8.12%6.35%
10 Year7.26%7.23%5.50%

Performance data quoted represents past performance and is no guarantee of future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than quoted. Performance data for the most recent month-end is available above.

The SmartETFs Asia Pacific Dividend Builder ETF acquired the assets and liabilities of the predecessor mutual fund, the Guinness Atkinson Asia Pacific Dividend Builder Fund, on March 26, 2021. As a result of the transaction, the Fund adopted the accounting and performance history of its predecessor mutual fund. Performance results shown prior to March 26, 2021, reflect the performance of the predecessor mutual fund. The Market Price returns shown prior to March 26, 2021 reflects the predecessor mutual fund’s NAV. 

Market Price: The current price at which shares are bought and sold. Market returns are based upon the last trade price.

NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. SmartETFs NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the Mid-Point between the Bid and Ask price as of the close of exchange. Closing price returns do not represent the returns you would receive if you traded shares at other times.

Effective as of the close of business on March 26, 2021, the fund acquired the assets and assumed the performance, financial and other historical information of the Guinness Atkinson Asia Pacific Dividend Builder Fund, an open-end mutual fund (incepted March 31, 2006). The fund’s investment objectives, strategies and policies are substantially similar to those of the predecessor mutual fund and it was managed by the same portfolio managers. Performance information for periods prior to March 26, 2021 is the historical performance of the predecessor mutual fund and reflects the higher operating expenses of the predecessor mutual fund. The fund has lower expenses than the predecessor mutual fund (including a lower management fee).  For periods prior to March 29, 2021, the fund’s performance would have been higher than shown had it operated with the fund’s current expense levels.

30-DAY MEDIAN BID/ASK SPREAD as of 05/13/20220.4035%

 

PREMIUM/DISCOUNT


PREMIUM/DISCOUNTCalendar Year 2021Q1 2022
Days traded at premium17948
Days traded at discount1514

 

ADIV Premium Discount NAV to Closing Price: Inception to Q4 2021

 

ADIV Premium Discount NAV to Closing Price: Q1 2022

 

HOLDINGS as of 05/16/2022
NET ASSETS %TICKERNAMEDESCRIPTIONMARKET PRICE ($)SHARES HELDMARKET VALUE ($)CUSIP
4.00688CHINA OVERSEAS LAND & INCOMMON STOCK3.0248,500146,427.69Y15004107
3.532388BOC HONG KONG HOLDINGS LCOMMON STOCK3.7534,500129,211.01Y0920U103
3.46AFLAFLAC INCCOMMON STOCK56.192,253126,596.071055102
3.322572SUOFEIYA HOME COLLECTIONCOMMON STOCK2.9740,900121,421.08Y29336107
3.31CICTCAPITALAND INTEGRATED COREIT - Real Estate Invesment Tru1.6374,200121,044.92Y1100L160
3.25MTSMETCASH LTDCOMMON STOCK3.2336,910119,138.26Q6014C106
3.23PBKPUBLIC BANK BERHADCOMMON STOCK1.03114,700118,142.56Y71497104
3.141398IND & COMM BK OF CHINA-HCOMMON STOCK0.58198,000115,017.29Y3990B112
3.09QCOMQUALCOMM INCCOMMON STOCK133.91846113,287.86747525103
3.06DBSDBS GROUP HOLDINGS LTDCOMMON STOCK22.444,986111,902.82Y20246107
↓ FULL HOLDINGS ↓
HOLDINGS as of 05/13/2022
NET ASSETS %TICKERNAMEDESCRIPTIONMARKET PRICE ($)SHARES HELDMARKET VALUE ($)CUSIP
3.93688CHINA OVERSEAS LAND & INCOMMON STOCK2.9648,500143,338.48Y15004107
3.572388BOC HONG KONG HOLDINGS LCOMMON STOCK3.7834,500130,529.49Y0920U103
3.47AFLAFLAC INCCOMMON STOCK56.282,253126,798.841055102
3.31CICTCAPITALAND INTEGRATED COREIT - Real Estate Invesment Tru1.6374,200120,953.65Y1100L160
3.31MTSMETCASH LTDCOMMON STOCK3.2736,910120,705.00Q6014C106
3.24PBKPUBLIC BANK BERHADCOMMON STOCK1.03114,700118,142.56Y71497104
3.202572SUOFEIYA HOME COLLECTIONCOMMON STOCK2.8540,900116,713.61Y29336107
3.161398IND & COMM BK OF CHINA-HCOMMON STOCK0.58198,000115,269.52Y3990B112
3.13QCOMQUALCOMM INCCOMMON STOCK134.93846114,150.78747525103
3.06DBSDBS GROUP HOLDINGS LTDCOMMON STOCK22.434,986111,818.45Y20246107
↓ FULL HOLDINGS ↓

*The Adviser has contractually agreed to reduce its fees and/or pay ETF expenses (excluding acquired fund fees and expenses, interest, taxes, dividends on short positions and extraordinary expenses) in order to limit the Fund’s total annual operating expenses to 0.78% through June 30, 2025. This contractual arrangement may be terminated by the Board of the Fund at any time without penalty upon 60 days’ notice.

Investing involves risk, including possible loss of principal. The Fund invests in securities that pay dividends, and there is no guarantee that the securities held by the Fund will declare or pay dividends in the future, or that dividends will remain at current levels or increase. Investments in foreign securities involve greater volatility, political, economic and currency risks and differences in accounting methods. These risks are greater for emerging markets countries. For more information on the risks of investing in this Fund, please see the prospectus.

Morningstar Ratings™ Disclosure

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.