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FDD - ETF AI Analysis
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First Trust Stoxx European Select Dividend Index Fund (FDD)
Rating:56Neutral
Price Target:―
Positive Factors
Strong Top Holdings
Several top holdings, such as ABN AMRO and NN Group, have delivered strong year-to-date performance, supporting the ETF's overall returns.
Geographic Diversification in Europe
The ETF spreads its investments across multiple European countries, reducing reliance on a single market.
Dividend Focus
The fund targets high-dividend-paying companies, which can provide steady income for investors.
Negative Factors
Sector Over-Concentration
The ETF is heavily weighted in the financial sector, making it vulnerable to downturns in that industry.
Weak Recent Performance
The fund has struggled in the short term, with negative returns over the past month and three months.
Moderate Expense Ratio
The ETF's expense ratio is higher than some low-cost alternatives, reducing potential net returns for investors.
FDD vs. SPDR S&P 500 ETF (SPY)
AUM697.63M
RegionEurope
Expense Ratio0.59%
Beta0.58
IssuerFirst Trust
Inception DateAug 27, 2007
Dividend Yield4%
Asset ClassEquity
Index TrackedSTOXX Europe Select Dividend 30
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume358,868
30 Day Avg. Volume288,583
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
17.86Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering31
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FDD Summary
The First Trust Stoxx European Select Dividend Index Fund (FDD) is an ETF that focuses on high dividend-paying companies in Europe. It tracks the STOXX Europe Select Dividend 30 Index, which includes 30 top dividend stocks from countries like the UK, Netherlands, and France. Some well-known companies in the fund are ABN AMRO Group and Legal & General. This ETF is ideal for investors seeking steady income through dividends and geographic diversification. However, new investors should note that its performance can be impacted by economic conditions in Europe, which may affect dividend payouts.
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
The FDD ETF leans heavily on European financials, with names like ABN AMRO and HSBC driving steady performance thanks to strong balance sheets and bullish technical momentum. Rio Tinto adds a touch of stability from the materials sector, benefiting from solid cash management and growth initiatives. However, Taylor Wimpey from the consumer cyclical space is lagging, weighed down by revenue challenges and valuation concerns. With its focus on high-dividend stocks across developed Europe, the fund offers income-focused investors a concentrated play on financials, but mixed results from other sectors temper its overall momentum.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| ABN AMRO Group N.V. | 5.04% | $35.52M | €24.37B | 99.56% | 74 Outperform | |
| ― | 4.82% | $33.90M | ― | ― | ― | |
| Legal & General | 4.49% | $31.58M | £14.43B | 14.95% | 61 Neutral | |
| Rio Tinto | 4.17% | $29.33M | £100.90B | 27.60% | 82 Outperform | |
| NN Group N.V. | 4.11% | $28.94M | €16.48B | 57.28% | 68 Neutral | |
| ― | 4.04% | $28.48M | ― | ― | ― | |
| Taylor Wimpey | 3.86% | $27.21M | £3.67B | -14.28% | 65 Neutral | |
| ― | 3.85% | $27.10M | ― | ― | ― | |
| HSBC Holdings | 3.82% | $26.87M | HK$2.11T | 52.23% | 80 Outperform | |
| Investec | 3.76% | $26.50M | £10.27B | 2.03% | 62 Neutral |
FDD Technical Analysis
Positive
―
Price Trends
16.33
Positive
16.08
Positive
15.13
Positive
Market Momentum
0.30
Negative
77.38
Negative
94.72
Negative
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 16.81, equal to the 50-day MA of 16.33, and equal to the 200-day MA of 15.13, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 77.38 is Negative, neither overbought nor oversold. The STOCH value of 94.72 is Negative, 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
17.45
6.67
61.87%
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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