SPY - FDL: Value Tilt Meaningful Yield Bleak Returns

• FDL is a passively managed fund that tracks the Morningstar Dividend Leaders Index. Its investment strategy is to select top U.S. dividend payers capable of maintaining their shareholder rewards.
• The ETF has only marginal exposure to the mid-cap universe of equities, with the NAV almost entirely allocated to stocks from the upper echelon of the U.S. market.
• FDL is overweight financials that account for over 20% of the NAV. Communication services are in second place with a 19% weight, thanks to T and VZ.
• Hunting for high yield may result in losing opportunities for high capital gains. FDL is a clear example of that.

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