FDL: Dividend Growth ETF With Lackluster Return And Quality

(6min)

Summary

  • First Trust Morningstar Dividend Leaders Index Fund is invested in 100 stocks featuring high yields and dividend growth.
  • FDL is well diversified across sectors, but quite concentrated in its top holdings.
  • Valuation and dividend growth are attractive, but growth, quality and historical return are underwhelming.
  • SCHD looks more attractive, although FDL has outperformed it recently.
  • Quantitative Risk & Value members get exclusive access to our real-world portfolio. See all our investments here »

Silver metallic dice showing the alphabets ETF and an up and down arrow on backgrounds of stock charts. Illustration of the concept of investment of exchange-traded funds

Dragon Claws

This article series aims to evaluate ETFs (exchange-traded funds) based on their past performance and portfolio metrics. Reviews with updated data will be posted when necessary.

FDL strategy

First Trust Morningstar Dividend Leaders Index Fund (NYSEARCA:

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This article was written by

16.06K Followers

Fred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010.

Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CVX, MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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About FDL ETF

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