As is the case with rival funds, FVD, which has a trailing 12-month distribution rate of 2.25%, is heavy on utilities and consumer staples names. Those sectors combine for 41.5% of the ETF’s weight and that could leave FVD vulnerable if interest rates rise. FVD is up 16% in the past year assuming dividends were reinvested. [Rising Rates Hurt Some Dividend ETFs]

Lower fee dividend ETF options include the Vanguard Dividend Appreciation ETF (NYSEArca: VIG). The largest U.S. dividend ETF by assets charges just 0.1% per year while the rival Schwab US Dividend Equity ETF (NYSEArca: SCHD) charges just 0.07%. First Trust also offers dividend ETFs with lower fees than FVD, including the new First Trust NASDAQ Rising Dividend Achievers ETF (NasdaqGM: RDVY). RDVY charges 0.5% per year.

First Trust Value Line Dividend Index Fund


ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of SCHD.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.