FVD - FVD: An Excellent Sector Mix

2024-07-19 17:22:50 ET

Summary

• Dividend investing may make a comeback due to volatility and interest in dividend-paying stocks.
• First Trust Value Line® Dividend Index Fund ETF tracks the Value Line Dividend Index, focusing on above-average dividend yield stocks.
• The FVD ETF offers diversification, equal-weighted holdings, and conservative sector positions, potentially outperforming in volatile markets.

I believe dividend investing will make a big comeback as volatility persists in large-cap averages entering the election and an interest rate cutting cycle. The pendulum tends to swing from capital appreciation as the primary driver of total return to yield, and I think we’re at a juncture where interest is just starting to return for dividend-paying stocks. If you’re in agreement, you may want to consider the First Trust Value Line® Dividend Index Fund ETF (FVD). This fund aims to track the performance of the Value Line® Dividend Index, a rules-based index of stocks with above-average dividend yields relative to the S&P 500....

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