VYM - First Trust Value Line Dividend Index Fund Is Overvalued - Wait For A Pullback
ETF Overview
First Trust Value Line Dividend Index Fund (FVD) focuses on dividend stocks based on Value Line’s safety ranking. The safety ranking is based on stock price stability as well as financial strength of these stocks. FVD’s portfolio of stocks are constructed based on equal-weightings and rebalances every month. FVD’s portfolio has higher exposure to defensive sectors than other dividend ETFs. Therefore, it may outperform in an economic downturn but underperform in an economic expansion. FVD is currently overvalued due to its exposure to the utilities sector. We think investors may want