FVD also features more than adequate to some steady dividend growth sectors, such as industrials and consumer staples, which combine for over a quarter of the ETF’s weight.
Dividend growth as a means of trumping inflation could and arguably should serve to highlight the advantages of the ETFs that focus on dividend growth stocks. That group is comprised of well-established ETFs that emphasize dividend increase streaks as well as a new breed of funds that look for sectors chock full of stocks that have the potential to be future sources of dividend growth.
Lower fee dividend ETF options include the Vanguard Dividend Appreciation ETF (NYSEArca: VIG). The largest U.S. dividend ETF by assets charges just 0.1% per year while the rival Schwab US Dividend Equity ETF (NYSEArca: SCHD) charges just 0.07%. First Trust also offers dividend ETFs with lower fees than FVD, including the First Trust NASDAQ Rising Dividend Achievers ETF (NasdaqGM: RDVY). RDVY charges 0.5% per year.
For more news and strategy on the Dividend ETF market, visit our Dividends category.
First Trust Value Line Dividend Index Fund