FVD: First Trust Value Line Dividend Index Fund - A Dividend ETF Tracking the Value Line Dividend Index
FVD - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| FVD | ETF | Equity Dividend ETF | Value Line Dividend Index | Monthly | US Quarterly |
0.70% | First Trust |
FVD Overview - The First Trust Value Line Dividend Index Fund
The First Trust Value Line Dividend Index Fund (FVD) is an exchange-traded fund that seeks to track the investment results of the Value Line Dividend Index. The index is composed of U.S. companies that have a history of consistently paying and increasing their dividends. The fund aims to provide exposure to high-quality, dividend-paying companies with strong financial health and the potential for long-term growth.
FVD focuses on companies with consistent dividend payouts and strong fundamentals, which may provide a more stable and reliable income stream for investors. The fund invests in large-, mid-, and small-capitalization stocks across various sectors, offering diversification benefits.
As a passively managed ETF, FVD has an expense ratio of 0.70%, which is higher than some other dividend-focused ETFs but still lower than many actively managed funds. The fund pays monthly distributions to its shareholders.
Investors may consider FVD as a core holding in a long-term portfolio, particularly those seeking a combination of income and potential capital appreciation. However, it is essential to evaluate individual investment goals, risk tolerance, and overall portfolio composition before making any investment decisions.
While past performance does not guarantee future results, FVD's focus on high-quality, dividend-paying stocks may appeal to investors seeking income that exceeds the average yield of the broader market, along with the potential for long-term growth of principal. The fund's monthly distributions and exposure to companies with strong dividend growth histories may make it an attractive option for income-focused investors.
FVD Price / Yield
FVD - Portfolio and Asset Allocation
The First Trust Value Line Dividend Index Fund (FVD) is a well-diversified fund that invests in a basket of U.S. companies with a history of consistently paying and increasing their dividends. The fund's portfolio comprises large-, mid-, and small-capitalization stocks across various sectors, providing investors with exposure to a broad range of dividend-paying companies.
FVD tracks the Value Line Dividend Index, which is designed to identify companies with above-average dividend yields and strong financial health. The index uses a proprietary ranking system that considers factors such as earnings growth, price stability, and dividend sustainability. By focusing on these key metrics, the fund aims to invest in companies that are not only capable of paying consistent dividends but also have the potential for long-term growth.
The fund's diversified approach helps to spread risk across various sectors and market capitalizations. This diversification is particularly important for dividend investors, as it helps to ensure that the fund's income stream remains stable even if some individual companies or sectors experience headwinds. By not relying too heavily on any single stock or sector, FVD can potentially weather market volatility better than more concentrated dividend funds.
Another key aspect of FVD's strategy is its focus on companies with a proven track record of consistently paying and growing dividends. This emphasis on dividend growth sets the fund apart from some other dividend-focused ETFs that may prioritize high current yields over the sustainability and growth of those dividends. By investing in companies with a history of dividend growth, FVD aims to provide investors with a stable and growing income stream over time, which can be particularly attractive for long-term investors or those in retirement.
In addition to its income potential, FVD also offers the potential for capital appreciation. As the companies in the fund's portfolio grow and their stock prices appreciate, investors may benefit from both rising dividend payments and share price gains. This combination of income and growth makes FVD an attractive option for investors seeking a core holding in their dividend income strategy.
As of the latest available data, FVD's top holdings are shown below:
| Name | Weight |
|---|---|
| Domino's Pizza Inc | 0.62% |
| McCormick & Company Inc | 0.62% |
| Silgan | 0.61% |
| Raytheon Technologies Corporation | 0.61% |
| Cummins Inc | 0.60% |
| Southwest Gas | 0.60% |
| WD-40 Company | 0.60% |
| Caterpillar | 0.60% |
| Dt Midstream, Inc. | 0.60% |
| General Dynamics | 0.60% |
These top 10 holdings represent approximately 6.06% of the fund's total assets, indicating a highly diversified portfolio with no single stock dominating the fund. The remaining assets are invested in a diverse array of companies from various sectors.
The fund's sector allocation is as follows:
| Sector | Weight |
|---|---|
| Industrials | 20.08% |
| Utilities | 17.33% |
| Consumer Defensive | 13.12% |
| Financial | 11.51% |
| Healthcare | 10.72% |
| Technology | 9.10% |
| Consumer Cyclical | 8.48% |
| Basic Materials | 2.85% |
| Communication Services | 2.81% |
| Real Estate | 2.27% |
| Energy | 1.74% |
FVD Dividend Yield and Distribution History
| Section | Details |
|---|---|
FVD Dividend Information |
The First Trust Value Line Dividend ETF (FVD) pays quarterly dividends. The most recent ex-dividend date was on March 21, 2024, with a dividend payment of $0.1887 per share on March 28, 2024. |
FVD Dividend Yield |
As of April 2, 2024, the 30-day SEC yield for FVD is 5.79%[^1^][1]. This means that for every $100 invested in the fund, investors would receive $5.79 in dividends per year, assuming the yield remains constant. |
FVD Dividend History |
FVD has a history of paying quarterly dividends. The dividend payments may fluctuate based on the performance of the underlying dividend-paying stocks held by the fund. |
FVD Dividend Stability |
FVD aims to provide a relatively stable income stream by investing in high-quality, dividend-paying stocks of U.S. companies with a history of consistently paying and growing their dividends. However, the dividend payments are not guaranteed and may be affected by changes in market conditions or the performance of the underlying stocks in the fund's portfolio. |
FVD - Chart
FVD - Comparative Analysis
Let's compare FVD with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Apr 2024)
| FVD | SDY | VYM | |
|---|---|---|---|
| Investment Focus | U.S. companies with a history of consistently paying and growing dividends | U.S. companies that have consistently increased dividends every year for at least 20 years | U.S. companies that pay above-average dividends |
| Current Yield | 2.24% | 2.55% | 2.86% |
| Expense Ratio | 0.70% | 0.35% | 0.06% |
| Investment Strategy | Passively tracks the Value Line Dividend Index | Passively tracks the S&P High Yield Dividend Aristocrats Index | Passively tracks the FTSE High Dividend Yield Index |
| Strengths | Focuses on companies with consistent dividend payments and growth, monthly distributions | Invests in companies with a long history of dividend growth, potential for lower volatility | Broad exposure to U.S. high-dividend stocks, low expense ratio |
| Weaknesses | Higher expense ratio than SDY and VYM | Lower yield than VYM, potentially lower dividend growth compared to FVD | May include companies with less consistent dividend growth compared to FVD and SDY |
FVD Dividend History (Last 5 distributions)
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Mar 20, 2024 | $0.19 | Mar 21, 2024 | Mar 27, 2024 |
| Dec 21, 2023 | $0.29 | Dec 25, 2023 | Dec 28, 2023 |
| Sep 22, 2023 | $0.18 | Sep 25, 2023 | Sep 29, 2023 |
| Jun 27, 2023 | $0.26 | Jun 28, 2023 | Jun 30, 2023 |
| Mar 23, 2023 | $0.21 | Mar 27, 2023 | Mar 31, 2023 |
News
Technical Analysis
Conclusion and Risks
The First Trust Value Line® Dividend Index Fund (FVD) is an ETF that seeks to replicate the performance of the Value Line® Dividend Index. This index is rebalanced and reconstituted monthly and focuses on companies with a history of consistent dividend payments and growth. FVD provides investors with exposure to a diversified portfolio of dividend-paying stocks, potentially offering a stable income stream and the opportunity for capital appreciation.
However, investors should be aware of the risks associated with investing in FVD. The fund's performance may be affected by various factors, such as changes in market conditions, economic trends, and the performance of the underlying securities within the index. Additionally, the fund's concentration in dividend-paying stocks may lead to underperformance during periods when dividend-paying stocks fall out of favor.
Investors should also consider the fund's expense ratio, which is higher than some of its competitors. This can impact the fund's overall returns, particularly over the long term. Moreover, while the fund aims to provide a steady income stream, dividend payments are not guaranteed and may be reduced or eliminated by the underlying companies in the portfolio.
It is essential to note that the information provided in this article, including any ETF fund flows, average dividend yield, payout ratio, or ESG data, should not be taken as an indication or guarantee of any future performance, forecast, or prediction. The MSCI ESG materials have not been submitted to, nor received approval from, the US SEC or any other regulatory body.
Before making any investment decisions, investors should carefully consider their investment objectives, risk tolerance, and time horizon. They should also consult with a qualified financial advisor to determine whether FVD aligns with their overall investment strategy and risk profile. This article is for informational purposes only and should not be considered a promotion or recommendation to buy, sell, or hold any security.
In conclusion, while the First Trust Value Line® Dividend Index Fund (FVD) offers investors a unique opportunity to gain exposure to dividend-paying stocks, it is crucial to weigh the potential benefits against the risks and costs associated with the fund. As with any investment, thorough research and due diligence are essential before making a decision.