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FDD - ETF AI Analysis
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First Trust Stoxx European Select Dividend Index Fund (FDD)
Rating:58Neutral
Price Target:―
Positive Factors
Recent Performance Momentum
The ETF has shown solid gains over the last three months, suggesting improving short-term momentum.
Income-Focused European Exposure
The fund targets dividend-paying European companies, which can appeal to investors seeking income from developed markets like the UK, Netherlands, France, and Germany.
Several Strong Financial Holdings
Key financial stocks such as ABN AMRO, Rio Tinto’s sector peer group, and HSBC have delivered generally strong year-to-date results, helping support the fund’s overall performance.
Negative Factors
High Financial Sector Concentration
With a large share of assets in financial companies, the ETF is heavily exposed to risks specific to banks and other financial institutions.
Relatively High Expense Ratio
The fund’s ongoing fee is on the higher side for an ETF, which can gradually reduce investors’ net returns over time.
Mixed Performance Among Top Holdings
Some important positions, such as NN Group and Taylor Wimpey, have shown weak year-to-date performance, which can drag on the fund if this continues.
FDD vs. SPDR S&P 500 ETF (SPY)
AUM805.09M
RegionEurope
Expense Ratio0.56%
Beta0.59
IssuerFirst Trust
Inception DateAug 27, 2007
Dividend Yield3.72%
Asset ClassEquity
Index TrackedSTOXX Europe Select Dividend 30
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume427,379
30 Day Avg. Volume287,008
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
19.14Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering31
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FDD Summary
FDD is an exchange-traded fund that follows the STOXX Europe Select Dividend 30 Index, which focuses on 30 European companies that pay relatively high dividends. It mainly holds financial and consumer-related businesses from countries like the UK, the Netherlands, France, and Germany. Well-known holdings include HSBC Holdings and Rio Tinto. Someone might consider FDD if they want regular income from dividends and broader diversification outside the U.S. stock market. A key risk is that the fund is heavily tilted toward financial stocks and European markets, so its price and dividends can go up and down with that region’s economy.
How much will it cost me?The expense ratio for the First Trust Stoxx European Select Dividend Index Fund (FDD) is 0.59%, meaning you’ll pay $5.90 per year for every $1,000 invested. This is higher than average for ETFs because it is a specialized fund that tracks high dividend-yielding stocks in Europe, requiring more active management. Higher costs are typical for funds with a niche focus like this one.
What would affect this ETF?The FDD ETF, which focuses on high dividend-yielding European stocks, could benefit from economic recovery in Europe, leading to stronger corporate earnings and stable dividend payouts, particularly in sectors like financials and consumer cyclical. However, it may face challenges from rising interest rates, which could make dividend-focused investments less attractive, and potential regulatory changes in Europe that could impact key sectors like financials and utilities. Additionally, currency fluctuations between the Euro and other major currencies could influence returns for international investors.
FDD Top 10 Holdings
FDD is leaning heavily on European financials, with names like HSBC, ABN AMRO, and Legal & General steering the ship. HSBC and ABN AMRO have been rising lately, giving the fund a helpful tailwind, while Legal & General and NN Group look more mixed, occasionally tapping the brakes. Outside of banks and insurers, Rio Tinto has been another bright spot, adding some materials muscle, while homebuilder Taylor Wimpey has been more of a steady, if unexciting, passenger. Overall, this is a Europe-focused, dividend-heavy fund with clear concentration in financials.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| ABN AMRO Group N.V. | 5.09% | $41.21M | €25.91B | 90.38% | 74 Outperform | |
| ― | 5.05% | $40.92M | ― | ― | ― | |
| Rio Tinto | 4.66% | $37.73M | £119.28B | 42.98% | 82 Outperform | |
| Legal & General | 4.33% | $35.08M | £14.81B | 11.35% | 61 Neutral | |
| ― | 4.29% | $34.74M | ― | ― | ― | |
| NN Group N.V. | 4.10% | $33.19M | €17.38B | 52.75% | 68 Neutral | |
| HSBC Holdings | 4.07% | $32.99M | £226.51B | 49.15% | 80 Outperform | |
| Investec | 4.04% | $32.76M | £11.38B | 17.94% | 62 Neutral | |
| ― | 4.00% | $32.39M | ― | ― | ― | |
| Taylor Wimpey | 3.78% | $30.60M | £3.79B | -6.02% | 65 Neutral |
FDD Technical Analysis
Positive
―
Price Trends
17.55
Positive
16.76
Positive
15.91
Positive
Market Momentum
0.33
Negative
65.85
Neutral
57.01
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 18.18, equal to the 50-day MA of 17.55, and equal to the 200-day MA of 15.91, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 65.85 is Neutral, neither overbought nor oversold. The STOCH value of 57.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDD.
FDD Peer Comparison
Comparison Results
Performance Comparison
FDD
First Trust Stoxx European Select Dividend Index Fund
18.77
6.94
58.66%
RDIV
Invesco S&P Ultra Dividend Revenue ETF
―
―
―
DIV
Global X SuperDividend US ETF
―
―
―
FDV
Federated Hermes U.S. Strategic Dividend ETF
―
―
―
DTH
WisdomTree International High Dividend Fund
―
―
―
DWX
SPDR S&P International Dividend ETF
―
―
―
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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