First Trust Dividend Strength ETF (FTDS)

Overview

The First Trust Dividend Strength ETF (FTDS) seeks investment results that correspond generally to the price and yield of an index called the NASDAQ US Dividend Achievers 50 Index, which is composed of 50 stocks selected from the NASDAQ US Broad Dividend Achievers Index based on dividend yield and fundamental strength.

Reputation and Reliability

First Trust is a well-established ETF provider known for its innovative and diverse product offerings.

Management Expertise

First Trust Advisors L.P. has a dedicated team of investment professionals with significant experience in managing ETFs and other investment products.

Goal

To provide investment results that correspond generally to the price and yield of the NASDAQ US Dividend Achievers 50 Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive investment strategy, seeking to replicate the performance of its underlying index.

Composition Primarily holds stocks of companies with a history of increasing or maintaining dividends. It focuses on dividend yield and fundamental strength.

Market Share: Insufficient data to provide an accurate market share. Market share is dynamic and requires access to updated industry reports.

Total Net Assets (AUM): 93000000

Key Competitors

• Vanguard Dividend Appreciation ETF (VIG)
• Schwab US Dividend Equity ETF (SCHD)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The dividend ETF market is highly competitive, with several large players offering similar strategies. FTDS differentiates itself through its unique selection criteria focusing on both dividend yield and fundamental strength based on the NASDAQ US Dividend Achievers 50 Index, though the AUM is comparatively low. VIG and SCHD have significant AUM, indicating their popularity, but may have different selection criteria.

Historical Performance: Historical performance can be found on financial websites, but specific numerical data requires access to current market data.

Benchmark Comparison: Benchmark comparison can be found on financial websites, but specific numerical data requires access to current market data.

Expense Ratio: 0.07

Average Trading Volume

The average daily trading volume provides good liquidity, facilitating easy buying and selling of shares, although volume can vary depending on market conditions.

Bid-Ask Spread

Typical bid-ask spreads are generally narrow indicating efficient trading and relatively lower transaction costs for investors.

Market Environment Factors

Economic indicators, interest rate changes, and sector performance influence the ETF's returns, as dividend-paying stocks can be sensitive to these factors.

Growth Trajectory

Growth trends depend on dividend policies of holdings and market conditions, with occasional strategic rebalancing to maintain alignment with the NASDAQ US Dividend Achievers 50 Index.

Competitive Edge

FTDS's advantage lies in its specific index methodology, which selects companies based on both dividend yield and fundamental strength. The ETF provides exposure to high-quality dividend-paying companies, offering a potentially stable income stream and capital appreciation. The NASDAQ US Dividend Achievers 50 Index ensures that companies included have a history of maintaining or increasing dividends. This approach differentiates it from competitors that may focus solely on dividend yield.

Volatility

Volatility is moderate, reflecting the stability of dividend-paying stocks, though market fluctuations can still impact performance.

Market Risk

The ETF is exposed to market risk, sector-specific risk (depending on sector allocation within the index), and the risk that companies may reduce or eliminate dividends.

Ideal Investor Profile

The ideal investor is a long-term investor seeking a combination of income and moderate capital appreciation through dividend-paying stocks.

Market Risk

Suitable for long-term investors, and potentially for those seeking passive income, as well as those looking for dividend-focused strategies.

First Trust Dividend Strength ETF (FTDS) offers exposure to high-quality dividend-paying companies selected by the NASDAQ US Dividend Achievers 50 Index. Its competitive edge lies in the blend of dividend yield and fundamental strength criteria. The ETF is best suited for long-term investors seeking a combination of income and moderate capital appreciation. Market risks such as economic indicators, interest rate changes, and sector performance will influence the ETF's returns. Its expense ratio is reasonable at 0.07% making it a suitable addition to dividend portfolios.

Data Sources:

• First Trust Website
• NASDAQ Website
• ETFdb.com
• Morningstar.com
• YCharts.com

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a financial advisor. Market data is subject to change.