The ETF’s technology weight of 8.1% is fair among dividend funds, but FVD allocates less than 2% to telecom, another highly rate-sensitive sector.
FVD’s holdings are also equally weighted. FVD currently shows 187 holdings and its largest component stocks only make up 0.65% 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.
At 0.7%, FVD is twice as expensive as the SPDR S&P Dividend ETF (NYSEArca: SDY) and seven times as expensive as the Vanguard Dividend Appreciation ETF (NYSEArca: VIG).
First Trust Value Line Dividend Index Fund
