Designed to provide broad exposure to the European Equity ETFs category of the market, the First Trust STOXX European Select Dividend ETF (FDD) is a smart beta exchange traded fund launched on 08/27/2007.
Launched on 08/27/2007, the First Trust STOXX European Select Dividend ETF (FDD) is a smart beta exchange traded fund offering broad exposure to the European Equity ETFs category of the market.
FDD targets 30 high-yielding European stocks, with supplementary screeners that call for a reasonable dividend payout ratio of 60%, and positive dividend growth over 5 years. Compared to other pockets in the world, FDD's dividend picture stands out, but relative to its own historical standards, it comes across as poor. FDD's financials-heavy portfolio could potentially prompt higher payouts going forward.
Making its debut on 08/27/2007, smart beta exchange traded fund First Trust STOXX European Select Dividend ETF (FDD) provides investors broad exposure to the European Equity ETFs category of the market.
First Trust STOXX® European Select Dividend Index Fund earns a strong buy rating for its smart beta dividend strategy tailored to Europe's value-centric market. FDD's high-conviction, quality dividend screening delivers superior risk-adjusted returns and capitalizes on financials' outperformance in a high-rate environment. Vanguard FTSE Europe ETF receives a buy rating for low cost, broad diversification but lacks FDD's alpha-generating value tilt.
The First Trust STOXX European Select Dividend ETF (FDD) made its debut on 08/27/2007, and is a smart beta exchange traded fund that provides broad exposure to the European Equity ETFs category of the market.
Launched on 08/27/2007, the First Trust STOXX European Select Dividend ETF (FDD) is a smart beta exchange traded fund offering broad exposure to the European Equity ETFs category of the market.
FDD offers strong momentum, high yield, and European Financials exposure, but growth-adjusted valuation is less attractive with a PEG ratio above 2x. Recent technicals show bearish RSI divergence and possible short-term weakness, despite a strong long-term trend and solid support near $15. Liquidity and risk profile are reasonable, but September-October seasonality and heavy Financials weighting warrant caution for new entries.
Making its debut on 08/27/2007, smart beta exchange traded fund First Trust STOXX European Select Dividend ETF (FDD) provides investors broad exposure to the European Equity ETFs category of the market.
FDD's recent outperformance is driven by heavy exposure to financials and energy, not by superior strategy or geographic allocation. Much of FDD's gains stem from multiple expansion in the financial and energy sectors, with prices rising faster than earnings. This multiple expansion is likely unsustainable, and a mean reversion could limit future outperformance for FDD.
Designed to provide broad exposure to the European Equity ETFs category of the market, the First Trust STOXX European Select Dividend ETF (FDD) is a smart beta exchange traded fund launched on 08/27/2007.
First Trust STOXX European Select Dividend ETF FDD is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 28.2% from its 52-week low price of $10.99/share.