FDL “specifically excludes REITs, which should be favorable for investors who want to hold the fund in a taxable account without worrying about the unqualified dividends coming from REITs. It also offers investors a benefit in assuring the shareholders that the fund won’t be duplicating any positions that decide to establish in REITs to generate additional yield for their portfolio,” according to a Seeking Alpha analysis of FDL.

Most investors view utilities as a reliable, income-generating asset that exhibit some bond-like characteristics. As interest rates declined, the sector appealed to many income investors for its relatively higher yields [Read more: Crunch Time for Rate-Sensitive ETFs].

Utilities traditionally trade at richer multiples relative to the broader market due to the sector’s defensive traits, but consumer staples are actually more expensive at the moment.

“Great dividend yield and I do like the strategy in place for investors that are seeking a strong dividend yield and willing to buy into the black box technique on the strength of the holdings that were selected the last time the allocations were handled,” adds Seeking Alpha.

Want more Dividends ETF news and analysis? Visit www.etftrends.com/Dividends

First Trust Morningstar Dividend Leaders Index Fund