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 06/30/2021FUND NAVMARKET PRICEINDEX
Year to Date11.65%11.65%6.28%
1 Year39.83%39.83%37.80%
3 Year11.10%11.10%11.83%
5 Year12.28%12.28%14.06%
10 Year7.38%7.38%6.81%

As of Quarter End 06/30/2021FUND NAVMARKET PRICEINDEX
Year to Date11.65%11.65%6.28%
1 Year39.83%39.83%37.80%
3 Year11.10%11.10%11.83%
5 Year12.28%12.28%14.06%
10 Year7.38%7.38%6.81%

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.

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.

 

PREMIUM/DISCOUNT


PREMIUM/DISCOUNTQ1 2021
Days traded at premium3
Days traded at discount0

 

ADIV Premium Discount NAV to Closing Price Q1 2021

 

 

HOLDINGS as of 07/23/2021
NET ASSETS %TICKERNAMEDESCRIPTIONMARKET PRICE ($)SHARES HELDMARKET VALUE ($)CUSIP
3.07TECHMTECH MAHINDRA LTDCOMMON STOCK15.169,468143,558.58Y85491127
3.073690KOREAN REINSURANCE COCOMMON STOCK8.2817,332143,447.20Y49391108
3.078464NIEN MADE ENTERPRISE COCOMMON STOCK15.919,000143,188.39Y6349P112
2.98TSMTAIWAN SEMICONDUCTOR-SP ADRCOMMON STOCK116.791,191139,096.89874039100
2.94DBSDBS GROUP HOLDINGS LTDCOMMON STOCK22.216,186137,416.12Y20246107
2.94CICTCAPITALAND INTEGRATED COREIT - Real Estate Invesment Tru1.5488,900137,277.11Y1100L160
2.92JBHJB HI-FI LTDCOMMON STOCK36.983,691136,511.08Q5029L101
2.92QCOMQUALCOMM INCCOMMON STOCK144.88941136,332.08747525103
2.911193CHINA RESOURCES GAS GROUCOMMON STOCK6.1722,000135,775.38G2113B108
2.9133780KT&G CORPCOMMON STOCK71.921,887135,713.00Y49904108
↓ FULL HOLDINGS ↓
HOLDINGS as of 07/22/2021
NET ASSETS %TICKERNAMEDESCRIPTIONMARKET PRICE ($)SHARES HELDMARKET VALUE ($)CUSIP
3.11TECHMTECH MAHINDRA LTDCOMMON STOCK15.439,468146,060.64Y85491127
3.043690KOREAN REINSURANCE COCOMMON STOCK8.2517,332142,997.45Y49391108
3.018464NIEN MADE ENTERPRISE COCOMMON STOCK15.729,000141,523.58Y6349P112
2.96TSMTAIWAN SEMICONDUCTOR-SP ADRCOMMON STOCK116.561,191138,822.95874039100
2.93DBSDBS GROUP HOLDINGS LTDCOMMON STOCK22.216,186137,416.11Y20246107
2.92CICTCAPITALAND INTEGRATED COREIT - Real Estate Invesment Tru1.5488,900137,322.55Y1100L160
2.9033780KT&G CORPCOMMON STOCK72.071,887136,000.30Y49904108
2.891193CHINA RESOURCES GAS GROUCOMMON STOCK6.1822,000135,892.47G2113B108
2.883968CHINA MERCHANTS BANK-HCOMMON STOCK8.2016,500135,361.64Y14896115
2.87JBHJB HI-FI LTDCOMMON STOCK36.563,691134,954.38Q5029L101
↓ 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.