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FDD - ETF AI Analysis

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FDD

First Trust Stoxx European Select Dividend Index Fund (FDD)

Rating:60Neutral
Price Target:
FDD, the First Trust Stoxx European Select Dividend Index Fund, has a solid but not outstanding rating, reflecting a mix of attractive dividends and value opportunities alongside some performance risks. Strong contributors like NatWest Group and ABN AMRO support the fund with positive momentum and appealing valuations, while holdings such as Teleperformance and several other names face bearish technical trends and financial or cash flow challenges that weigh on the overall score. The main risk is that many holdings show short-term bearish or volatile trends, so returns may be bumpy even though valuations and dividend yields look appealing.
Positive Factors
Solid Recent Performance
The fund’s year-to-date and recent three-month results have been strong, showing positive momentum in its European dividend strategy.
Strong Top Financial Holdings
Several major financial stocks in the top holdings, such as Aegon, ABN AMRO, and Investec, have delivered strong gains, helping support the ETF’s returns.
Broad European Country Exposure
The ETF spreads its investments across multiple European markets, including the UK, France, Netherlands, Germany, Italy, Poland, and Switzerland, which helps reduce reliance on any single country.
Negative Factors
High Country Concentration
A large portion of the portfolio is concentrated in just three countries (UK, France, and the Netherlands), increasing the impact if those markets face problems.
Mixed Performance Among Top Holdings
Some of the biggest positions, such as Taylor Wimpey, Teleperformance, and Signify, have shown weak performance, which can drag on overall fund results.
Above-Average Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.

FDD vs. SPDR S&P 500 ETF (SPY)

FDD Summary

FDD is an exchange-traded fund that follows the STOXX Europe Select Dividend 30 Index, focusing on 30 European companies that pay high dividends. It spreads your money across countries like the UK, France, and the Netherlands and includes well-known names such as Legal & General and NatWest Group. Investors might consider FDD if they want regular income from dividends and broader diversification outside the U.S. market. However, because it targets high-dividend European stocks, its price and payouts can go up and down with the European market and the financial sector.
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 leans heavily on European financials, with names like Legal & General, Aegon, NN Group, and ABN AMRO quietly powering the fund thanks to rising share prices and rich dividends. NatWest and Investec add to that momentum, giving the ETF a solid banking and insurance backbone. On the flip side, homebuilder Taylor Wimpey has been lagging, acting as a bit of a speed bump in an otherwise steady income ride. With holdings spread across the U.K., Netherlands, and broader developed Europe, this is very much a European dividend story rather than a global growth play.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Legal & General6.05%$53.94M£16.40B17.30%
61
Neutral
Teleperformance5.04%$44.88M€4.13B-1.01%
72
Outperform
B&M European Value Retail SA4.57%$40.71M£2.24B5.26%
66
Neutral
Aegon NV4.36%$38.90M€12.31B35.08%
61
Neutral
Taylor Wimpey4.28%$38.15M£2.72B-21.47%
65
Neutral
4.10%$36.53M
NatWest Group4.02%$35.87M£56.11B36.94%
75
Outperform
Investec4.02%$35.86M£12.15B19.29%
62
Neutral
ABN AMRO Group N.V.4.01%$35.71M€32.10B56.41%
74
Outperform
NN Group N.V.3.50%$31.17M€20.55B37.47%
68
Neutral

FDD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
19.09
Positive
100DMA
18.58
Positive
200DMA
17.65
Positive
Market Momentum
MACD
0.35
Negative
RSI
75.71
Negative
STOCH
95.15
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 19.45, equal to the 50-day MA of 19.09, and equal to the 200-day MA of 17.65, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 75.71 is Negative, neither overbought nor oversold. The STOCH value of 95.15 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
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$899.51M0.56%
60
Neutral
$881.91M0.50%
72
Outperform
$787.35M0.45%
69
Neutral
$651.77M0.58%
63
Neutral
$533.13M0.45%
58
Neutral
$363.12M0.18%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDD
First Trust Stoxx European Select Dividend Index Fund
20.32
5.33
35.56%
FDV
Federated Hermes U.S. Strategic Dividend ETF
DIV
Global X SuperDividend US ETF
DTH
WisdomTree International High Dividend Fund
DWX
SPDR S&P International Dividend ETF
FIDI
Fidelity International High 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.
DisclaimerThis 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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