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FDL - ETF AI Analysis

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FDL

First Trust Morningstar Dividend Leaders Index Fund (FDL)

Rating:73Outperform
Price Target:
FDL, the First Trust Morningstar Dividend Leaders Index Fund, earns a solid overall rating driven mainly by large positions in financially strong, dividend-focused companies like Exxon Mobil, Verizon, Merck, and PepsiCo, which show robust cash flows, solid profitability, and generally positive outlooks. The fund is somewhat held back by holdings such as Altria and UPS, where technical weaknesses, leverage, and slower revenue growth add uncertainty. A key risk factor is the fund’s concentration in a relatively small group of large dividend payers, especially in sectors like energy and healthcare, which can make performance more sensitive to industry-specific downturns.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, indicating that its dividend-focused strategy has recently worked well for investors.
Leading Dividend-Paying Blue Chips
Many of the largest holdings are well-known, established companies with strong recent performance, which can provide both income and stability.
Defensive Sector Tilt
Heavy exposure to sectors like health care, consumer defensive, and utilities can help cushion the portfolio during market downturns.
Negative Factors
High Energy Concentration
A large portion of the fund is invested in energy stocks, which can make returns more sensitive to swings in oil and gas markets.
Limited Technology Exposure
Very small weighting in technology means investors may miss out if tech stocks continue to drive a big part of overall market growth.
U.S.-Only Geographic Focus
With almost all assets in U.S. companies, the fund offers little diversification across different global markets and economies.

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

FDL Summary

FDL is an exchange-traded fund that follows the Morningstar Dividend Leaders Index, focusing on large U.S. companies that pay relatively high and steady dividends. It holds well-known names like Exxon Mobil and Chevron, along with firms in health care, consumer staples, and utilities, giving investors broad sector diversification while aiming to provide regular income. Someone might consider FDL if they want a simple way to earn dividend income from many established companies instead of picking individual stocks. A key risk is that the fund is heavily tilted toward energy and other dividend-focused sectors, so its value can go up and down with those parts of the market.
How much will it cost me?The First Trust Morningstar Dividend Leaders Index Fund (FDL) has an expense ratio of 0.43%, meaning you’ll pay $4.30 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is passively managed but focuses on a niche strategy of high dividend yield stocks, which can require more specialized tracking.
What would affect this ETF?FDL could benefit from stable or rising energy prices, as its top holdings include Exxon Mobil and Chevron, which are major players in the energy sector. Additionally, strong consumer spending and demand for healthcare products could positively impact companies like Pfizer and PepsiCo. However, rising interest rates or economic slowdowns may negatively affect dividend-paying stocks, particularly in sectors like utilities and consumer defensive, which rely on stable cash flows. Regulatory changes in healthcare or energy could also pose risks to key holdings.

FDL Top 10 Holdings

FDL leans heavily on old-school dividend powerhouses, with Exxon Mobil and Chevron setting the tone: energy has been rising over the past few months, even if it’s cooled off lately, so these names still pull a lot of the fund’s weight. Health care is the other big engine, where steady climbers like Pfizer, Merck, and Bristol-Myers Squibb provide a slow-and-sturdy lift. Verizon adds a rising income play from communications, while Comcast’s more mixed performance is a mild drag. Overall, it’s a U.S.-centric, dividend-first portfolio with clear tilts toward energy and health care.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Exxon Mobil10.00%$724.10M$618.95B37.16%
74
Outperform
Chevron8.42%$609.41M$369.57B33.50%
71
Outperform
Verizon7.01%$507.16M$195.62B10.66%
81
Outperform
Pfizer6.43%$465.35M$153.59B17.80%
74
Outperform
Merck & Company5.28%$382.25M$276.38B35.24%
80
Outperform
PepsiCo4.91%$355.37M$212.45B16.54%
78
Outperform
Altria Group4.65%$336.85M$111.78B14.80%
64
Neutral
United Parcel3.40%$246.09M$90.96B9.30%
72
Outperform
Bristol-Myers Squibb3.25%$235.38M$119.87B22.57%
78
Outperform
Conocophillips2.83%$204.58M$148.41B32.75%
78
Outperform

FDL Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
50.01
Negative
100DMA
47.70
Positive
200DMA
44.94
Positive
Market Momentum
MACD
-0.04
Positive
RSI
44.90
Neutral
STOCH
55.51
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDL, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 50.01, equal to the 50-day MA of 50.01, and equal to the 200-day MA of 44.94, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 55.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FDL.

FDL Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$7.35B0.43%
73
Outperform
$9.13B0.15%
69
Neutral
$8.20B0.61%
71
Outperform
$7.28B0.07%
67
Neutral
$1.47B0.38%
70
Outperform
$1.04B0.54%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDL
First Trust Morningstar Dividend Leaders Index Fund
49.47
10.25
26.13%
FDVV
Fidelity High Dividend ETF
FVD
First Trust Value Line Dividend Index Fund
SPYD
SPDR Portfolio S&P 500 High Dividend ETF
DHS
WisdomTree U.S. High Dividend Fund
PEY
Invesco High Yield Equity Dividend Achievers 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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