This is an actively managed global dividend ETF that does not track a specific index, with the portfolio manager selecting the stocks. It holds U.S. and non-U.S. companies judged to have financial soundness, management capability and the capacity to pay dividends.

It suits investors who want global diversification along with active exposure to quality companies with dividend potential.

It is an ETF run with an active (actively managed) strategy by Cresalta.

By combining macroeconomic analysis, quantitative stock ranking and traditional fundamental company analysis, the fund looks for undervalued companies that can pay dividends from solid cash flow or that have strong dividend capacity going forward. Because it does not follow an index, holdings and weightings are adjusted according to the manager's judgment.

• Active stock selection without tracking an index
• A global dividend approach spanning U.S. and non-U.S. companies

Assets under management (AUM) stand at $140.7M, and the total expense ratio is 0.50% per year.

Unlike passive dividend ETFs that track an index, the manager's discretion is directly reflected in performance, and fees are somewhat higher than those of passive core funds as a result.

Because this is an active strategy that selects stocks directly rather than tracking an index, its performance depends on the manager's stock picking and on the overall environment for global dividend stocks. Short-term moves can be affected by interest rates, exchange rates and regional equity market swings.

It is a relatively recent product that combines global dividends with active management, and fund flows may fluctuate with demand for dividend themes and market interest in active ETFs.

Global diversification and active dividend selection are its strengths, while somewhat higher fees than passive funds and dependence on manager performance are its weaknesses.

Within the broad theme of global dividends, comparable options include VYMI, which holds a wide range of high-dividend developed-market stocks, and VIGI, which focuses on global dividend growth. For a focus on U.S. dividend growth, SCHD is an alternative, and for high-yield emphasis, VYM is another. This ETF differs from these passive products in its management approach, since it does not follow an index and selects stocks directly.

Here are the points to review before investing in CVGD. As an actively managed global dividend ETF that picks stocks directly rather than tracking an index, it is best to thoroughly check its management approach, fees, global exposure and currency effects in advance.

Because it does not track an index, its performance can differ greatly from a benchmark, and given the nature of global assets, exchange rates and regional equity market swings are the main drivers of short-term volatility. The dividend policy may also change depending on management decisions.

It is a suitable product for investors who want to diversify across global dividend stocks through an active approach. If cost and simplicity come first, consider a passive dividend ETF, and if you are counting on the manager's selection skill, consider CVGD.