- Overseeing around $475 million in AUM, FDRR is moderately priced, with its expense ratio of 0.29% being lower than the U.S. Equities asset class median of 0.38%.
- The fund offers a distribution yield marginally north of 2%, which is above the yield of SPY, but the drawback is its poor historical dividend growth.
- The purpose of its benchmark is to reflect the performance of the U.S. and developed world equities that pay a dividend and that should benefit from the rampant economic activity.
- As the historical data illustrate, FDRR is not an alpha fund. Since its inception in September 2016, it underperformed SPY three times: in 2017, 2019, and 2020.
- All things considered, I would opt for a neutral rating.
For further details see:
FDRR: Dividend Strategy Mindful Of The Macro