FVD’s utilities and staples exposure is somewhat offset by a combined 30% weight to financial services and industrials names, groups that often perform as Fed policy turns hawkish. Rising Treasury yields and slumping utilities stocks have not been enough to sour investors on FVD.
FVD devotes another 12.4% of its weight to consumer staples stocks, another sector that historically lags when interest rates climb. [Some Investors Stick With Utilities ETFs as Sector Slides]
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
