SEEKING EQUITY MARKET PARTICIPATION WITH VOLATILITY MANAGEMENT?


 

Explore our Low Volatility High Dividend ETF [LVHD]

With many equity markets at or near their recent record highs, investors may feel trapped; sell now and forfeit potential future gains ...
wait too long and risk any accumulated gains. Consider LVHD - our low volatility high dividend strategy for equity investors.

Fewer steep drawdowns have helped deliver higher returns

Since its inception (12/28/2015), LVHD has experienced lower volatility than the Russell 3000 and S&P 500 indices.  

Performance Index - LVHD ETF


Source: Bloomberg. Data as of June 30, 2017. Includes reinvestment of dividends.
Performance shown represents past performance and is no guarantee of future results. 


 

LVHD Average Annual Total Returns (%) as of June 30, 2017

 YTD1-yearSince Fund Inception 12/28/2015
Market Price6.979.4116.22
NAV6.759.2716.11
S&P 500 Index9.3417.9013.93
Russell 3000 Index8.9318.5114.14
QS Low Volatility High Dividend Index6.919.6216.46
LVHD Expense Ratio: 0.27%

Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so shares, when redeemed, may be worth more or less than the original cost. Retail investors buy and sell shares of ETFs at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for purchase or redemption directly from the ETF. Market price returns are based upon the mid-point of the National Best Bid and Offer (NBBO) when the ETF’s NAV is determined, which is typically 4 p.m. Eastern time. These returns will not represent your returns had you traded shares at other times. YTD is calculated from January 1 of the reporting year. For the most recent month-end information, please visit www.leggmason.com. Return figures for periods over one year are annualized.

1Maximum drawdown (MDD) is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period. 

2Volatility is measured by standard deviation, which measures the risk or volatility of an investment’s return over a particular time period; the greater the number, the greater the risk. Data reflected herein is from 12/28/2015 – 6/30/2017.

Net Asset Value (NAV) is total assets less total liabilities divided by the number of shares outstanding. Market Price, determined by supply and demand, is the price an investor purchases or sells the fund. The Market Price may differ from a fund’s NAV.

 

 



 

Three Tenets of LVHD

Built on three tenets, LVHD targets lower volatility stocks with the potential for sustainable dividends and capital appreciation.  
 

Low Volatility

Emphasis on lower price and earnings volatility

 

Sustainable High Dividends

Focus on higher dividends with supportive earnings

 

Complementary Factors

Incorporate factors that can work better together


 



 

Take a Look at Legg Mason's Innovative ETF Suite

To meet equity investors' needs, we offer U.S., emerging markets and international strategies seeking low volatility and high income.
 

International investments are subject to special risks including currency fluctuations, social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.  Dividends are not guaranteed, and a company may reduce or eliminate its dividend at any time.

 

 

Resources

Discover how ETFs can be an easy-to-use, low-cost and tax-efficient way to invest.

 

WHAT I SHOULD KNOW BEFORE INVESTING  The Fund is newly organized, with a limited history of operations. Equity securities are subject to price fluctuation and possible loss of principal. Dividends are not guaranteed, and a company may reduce or eliminate its dividend at any time. In rising markets, the value of large-cap stocks may not rise as much as smaller-cap stocks. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. The Fund may focus its investments in certain industries, increasing its vulnerability to market volatility. Real estate investment trusts (REITs) are closely linked to the performance of the real estate markets. REITs are subject to illiquidity, credit and interest rate risks, and risks associated with small and mid-cap investments. There is no guarantee that the Fund will achieve a high degree of correlation to the index it seeks to track. The Fund does not seek to outperform the index it tracks, and does not seek temporary defensive positions when markets decline or appear overvalued. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance.

The Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies. The S&P 500 Index is a capitalization-weighted, composite index of 500 stocks designed to measure the performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Please note that an investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. The QS Low Volatility High Dividend Index (the “Index”) is based on a proprietary methodology created and sponsored by QS Investors, LLC (QS), the sub-adviser. The methodology calculates a composite “stable yield” score, with the yield of stocks with relatively high price and earnings volatility adjusted downward and the yield of stocks with relatively low price and earnings volatility adjusted upward. The composition of the Index after annual reconstitution and rebalancing may fluctuate and exceed the aforementioned limits due to market movements. The components of the Underlying Index, and the degree to which these components represent certain sectors and industries, may change over time.

 

 

If you are neither a resident nor a citizen of the United States or if you are a non-U.S. entity, the ETF's ordinary income dividends (which include distributions of net short-term capital gains) will generally be subject to a 30% U.S. federal withholding tax, unless a lower treaty rate applies. For further information, please see each the ETF’s prospectus which is available on www.leggmason.com

Redemption payments will be effected within the specified number of calendar days following the date on which a request for redemption in proper form is made. For further information, please see each ETF’s statement of additional information (SAI) which is available on www.leggmason.com



Authorized participants ("APs") may acquire shares in the primary market directly from the ETFs and may tender their shares for redemption directly to the ETFs, at net asset value per share only in Creation Units or Creation Unit Aggregations. Once created, shares of the funds generally trade in the secondary market in amounts less than a Creation Unit. Retail investors buy and sell shares of ETFs at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for purchase or redemption directly from the ETF.

Legg Mason, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

IMPORTANT INFORMATION: All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s web page for specific details regarding investment objective, risks, performance and other important information. Review this information carefully before you make any investment decision.

Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. Please view the prospectus or summary prospectus for this and other information. Read it carefully.

FINANCIAL ADVISORS: Please note that not all share classes may be available for sale at your firm. Please call the Legg Mason Sales Desk 1-800-822-5544 or your Legg Mason Sales contact for more information.