While FVD is home to 17 Dow components and mostly U.S. stocks, the ETF’s international exposure should be overlooked as a dividend advantage.
FVD’s non-U.S. holdings include several Canadian banks, which have proven to be steadier dividend payers than their U.S. counterparts. The ETF also sports some exposure to European oil majors, such as Royal Dutch Shell (NYSE: RDS-A) and Total e (NYSE: TOT). Those stocks sport higher dividend yields and more attractive valuations than their U.S. equivalents. [Global Energy ETFs Look Like Bargains]
The rub with FVD is a 0.7% annual expense ratio, making it one of the pricier options in the U.S. dividend ETF arena. That has not stopped FVD from becoming a $920.4 million ETF and nearly $61 million of those assets have come into the fund this year.
First Trust Value Line Dividend Index Fund
