First Trust Dow Jones Global Select Dividend Index Fund (FGD)

Overview

The First Trust Dow Jones Global Select Dividend Index Fund (FGD) seeks investment results that correspond generally to the price and yield of the Dow Jones Global Select Dividend Index. It focuses on high-dividend-yielding global stocks.

Reputation and Reliability

First Trust is a well-known and established ETF provider with a solid track record.

Management Expertise

First Trust has extensive experience in managing ETFs, including dividend-focused strategies.

Goal

Seeks investment results that correspond generally to the price and yield of the Dow Jones Global Select Dividend Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Dow Jones Global Select Dividend Index, which selects 100 of the highest dividend-paying securities across the globe (excluding the US).

Composition The ETF primarily holds dividend-paying stocks from developed markets outside the U.S.

Market Share: FGD's market share within the global dividend ETF space is relatively moderate, but competitive.

Total Net Assets (AUM): 580458748

Key Competitors

• VYMI
• SCHY
• IDV
• DVY

Competitive Landscape

The global dividend ETF market is competitive. FGD faces competition from larger, more established funds with potentially lower expense ratios. FGD's focus on the Dow Jones Global Select Dividend Index provides some differentiation, but it must compete on performance and cost. It also has more holdings than some competitors, which may or may not be beneficial, depending on the market circumstances.

Historical Performance: Historical performance data needs to be sourced separately. (Example: 1-year return, 3-year return, 5-year return can be represented as an array).

Benchmark Comparison: The ETF's performance should be compared to the Dow Jones Global Select Dividend Index.

Expense Ratio: 0.59

Average Trading Volume

The average daily trading volume is moderate, offering sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, suggesting relatively low trading costs.

Market Environment Factors

Global economic conditions, interest rate changes, and dividend policies of international companies influence FGD's performance.

Growth Trajectory

Growth depends on the performance of the underlying index and the attractiveness of global dividend stocks. Changes to underlying index composition, such as weighting or criteria for selection could also impact growth trajectory.

Competitive Edge

FGD's competitive advantage lies in its focus on a specific dividend-weighted index, offering exposure to a global portfolio of high-yielding stocks. The ETF offers diversification across developed markets, excluding the US, and potentially provides higher dividend yields than domestic dividend funds. Its rules-based selection process aims to identify stable and consistent dividend payers, which may appeal to income-seeking investors. However, the relatively high expense ratio compared to some competitors could be a disadvantage.

Volatility

The ETF's volatility is tied to the volatility of the underlying global stock market and currency fluctuations.

Market Risk

Market risk includes economic downturns, geopolitical events, and changes in dividend policies affecting global dividend-paying companies.

Ideal Investor Profile

The ideal investor is someone seeking international dividend income and diversification, and who is comfortable with the risks associated with international equity investments.

Market Risk

FGD is suitable for long-term investors seeking income and diversification, but may also appeal to passive index followers who want global dividend exposure.

First Trust Dow Jones Global Select Dividend Index Fund (FGD) offers exposure to high-dividend-yielding global equities. It tracks the Dow Jones Global Select Dividend Index, providing diversification across developed markets (ex-US). The fund may appeal to investors seeking international income, but potential investors should consider its expense ratio and volatility. Performance will depend on the underlying index. Competitors with higher trading volume and lower expense ratios also need to be considered.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own research before making any investment decisions. Market share data is approximate and may vary.