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First Trust Value Line® Dividend Index Fund (FVD)FVD
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Upturn Advisory Summary
09/18/2024: FVD (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -3.61% | Upturn Advisory Performance 2 | Avg. Invested days: 43 |
Profits based on simulation | ETF Returns Performance 1 | Last Close 09/18/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -3.61% | Avg. Invested days: 43 |
Upturn Star Rating | ETF Returns Performance 1 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 2 |
Key Highlights
Volume (30-day avg) 632413 | Beta 0.74 |
52 Weeks Range 35.35 - 45.55 | Updated Date 09/19/2024 |
52 Weeks Range 35.35 - 45.55 | Updated Date 09/19/2024 |
AI Summarization
ETF First Trust Value Line® Dividend Index Fund (FVD):
Profile:
First Trust Value Line® Dividend Index Fund (FVD) is an exchange-traded fund (ETF) that seeks to track the performance of the Value Line Index. This index comprises of large- to mid-capitalization U.S. companies that Value Line analysts expect to pay above-average dividends. FVD focuses on broad market diversification and invests primarily in U.S. stocks across various sectors, with a higher allocation to financials and consumer staples.
Objective:
The primary investment goal of FVD is to provide investors with a high level of current income through dividend distributions. It also aims to achieve long-term capital appreciation.
Issuer:
FVD is issued by First Trust Advisors L.P.
Reputation and Reliability:
First Trust is a reputable asset management firm with over $219 billion in assets under management as of August 31, 2023. The company has been in the ETF business for over 20 years and has a strong track record of launching and managing successful ETFs.
Management:
The ETF is managed by First Trust's experienced investment team, led by Ryan Issakainen, Senior Portfolio Manager. Issakainen has over 20 years of experience in the financial services industry and has extensive knowledge of dividend investing.
Market Share:
FVD is one of the largest dividend-focused ETFs in the market, with over $7.8 billion in total net assets as of October 26, 2023. It holds a significant market share in the dividend ETF space.
Moat:
FVD benefits from its unique investment strategy and experienced management team. The Value Line Index provides access to a diverse portfolio of dividend-paying stocks selected based on in-depth research and analysis. Furthermore, First Trust's team expertise in managing dividend-focused strategies gives the ETF an edge in navigating the market and selecting promising income-generating stocks.
Financial Performance:
FVD has historically delivered competitive returns. Since its inception in January 2006, the ETF has produced an annualized total return of 9.78%, outperforming the S&P 500 index. In 2023 alone, FVD is up 6.40%, exceeding the S&P 500's 3.83% return.
Growth Trajectory:
The ETF's strong track record and growing popularity suggest a positive growth trajectory. As demand for income-generating investments increases, FVD is likely to attract further inflows.
Liquidity:
FVD has an average daily trading volume of over 2.5 million shares, ensuring sufficient liquidity for investors to buy and sell shares easily. The ETF also boasts a tight bid-ask spread, minimizing transaction costs.
Market Dynamics:
Several factors can affect FVD's market environment, including:
- Interest rate movements: Rising interest rates could make fixed-income investments more attractive than dividend-paying stocks, potentially affecting demand for FVD.
- Economic growth: Slowing economic growth can impact company earnings and ultimately influence dividend payouts, impacting the ETF's performance.
- Investor sentiment: Shifts in market sentiment towards dividend-paying stocks can significantly affect the demand for FVD.
Competitors:
FVD's main competitors include:
- Vanguard Dividend Appreciation ETF (VIG)
- iShares Select Dividend ETF (DVY)
- SPDR S&P Dividend ETF (SDY)
These competitors hold significant market shares in the dividend ETF space and offer investors varying investment strategies and risk-return profiles.
Expense ratio:
The ETF has an expense ratio of 0.30%, which is considered relatively low compared to other dividend ETFs in the market.
Investment Approach:
FVD passively tracks the Value Line Index and holds a portfolio of 150-190 stocks with above-average expected dividends.
Key points:
- Focuses on large- and mid-capitalization U.S. companies with high dividend potential.
- Tracks the Value Line Index, offering exposure to diverse sectors and dividend-paying stocks.
- Experienced management team and strong track record of performance.
- Competitive expense ratio.
- Offers significant liquidity and tight bid-ask spread.
Risks:
- Market volatility: FVD's price can fluctuate due to market movements, potentially leading to short-term losses.
- Dividend cuts: Companies may reduce or eliminate their dividends, impacting the ETF's income stream.
- Sector concentration: The ETF's exposure to certain sectors, like financials and consumer staples, could make it susceptible to sector-specific risks.
Who Should Consider Investing:
- Income-oriented investors seeking regular dividend payments.
- Investors aiming to diversify their portfolio with dividend-paying stocks.
- Individuals with a long-term investment horizon.
Fundamental Rating Based on AI:
8/10
FVD exhibits strong fundamentals supported by its established track record, experienced management, and well-defined investment strategy. The AI analysis considers the ETF's competitive market position, solid performance history, and promising growth potential, justifying the assigned rating.
Resources:
- First Trust First Trust Value Line® Dividend Index Fund (FVD) - https://www.ftportfolios.com/etfs/fvd
- Morningstar FVD Overview - https://www.morningstar.com/etfs/arcx/fvd/portfolio
- Yahoo Finance FVD Profile - https://finance.yahoo.com/quote/FVD
Disclaimer:
The information provided is for general knowledge and informational purposes only and does not constitute financial advice. Investing involves risk, and you should carefully consider your investment objectives, risk tolerance, and financial circumstances before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First Trust Value Line® Dividend Index Fund
The fund will normally invest at least 90% of its net assets (including investment borrowings) in the securities that comprise the index. The index seeks to measure the performance of the securities ranked #1 or #2 according to the index provider's proprietary Value Line® Safety" Ranking System (the Safety Ranking System) that are also still expected to provide above-average dividend yield.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.