The First Trust Morningstar Dividend Leaders Index ETF (FDL) focuses on the top 100 dividend yielders with basic quality screens, excluding REITs and capping individual stock weights. However, recent changes have reduced its holdings to 85, though this is expected to return to 100 after reconstitution. Despite its high yield, FDL lacks compelling quality and growth potential compared to peers. The analyst recommends alternatives like FDVV or SCHD for better long-term results and quality profiles.
The SCHD ETF has returned just under 2% in the past month, outperforming the S&P 500 ETF (SPY) by nearly 1%. Year-to-date, about 30 SCHD holdings have more than doubled the returns of SPY, which has returned 9.8%. Additionally, 31 SCHD holdings are t...
The Schwab U.S. Dividend Equity ETF (SCHD) has gained 20% year-to-date, outperforming the S&P 500's 10% rise. SCHD focuses on large-cap companies with strong dividend histories and value metrics, avoiding mega-cap tech stocks that led recent market r...
