Component holdings are also equally weighted. FVD currently shows 187 holdings and its largest component stocks only make up 0.6% of the underlying portfolio.

However, this strategic beta index-based ETF is more costly than the average dividend ETF. FVD shows a 0.70% expense ratio, compared to the average 0.58% expense ratio for dividend-yield weighted ETFs and 0.5% expense ratio for the average dividend-weighted ETF, according to XTF data.

First Trust Value Line Dividend Index Fund

For more information on dividend strategies, visit our dividend ETFs category.

Max Chen contributed to this article.