FDL - ETF AI Analysis

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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 largely by strong, dividend-focused blue chips like Exxon Mobil, Verizon, Merck, and PepsiCo, which combine healthy financial performance, solid cash flows, and generally positive outlooks. The fund is somewhat held back by names like Altria and UPS, where technical weakness, leverage, and slower revenue growth introduce some drag, and investors should note the fund’s meaningful exposure to energy and healthcare, which can increase sector-specific risk.

Positive Factors

Strong Energy Leaders at the Top

Large positions in major energy companies like Exxon Mobil and Chevron have shown strong gains, helping support the fund’s recent performance.

Defensive Sector Tilt

Heavy exposure to sectors such as Health Care, Consumer Defensive, and Utilities can provide some stability during market downturns.

Solid Recent Performance Trend

The fund has delivered steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.

Negative Factors

High Concentration in Energy

A large portion of the portfolio is in the Energy sector, which increases the fund’s sensitivity to swings in oil and gas markets.

Mixed Results Among Top Holdings

Some major positions, such as Verizon and Comcast, have shown weak performance, which can drag on overall returns.

Limited Geographic Diversification

With almost all assets invested in U.S. companies, the fund offers little exposure to international markets.

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

AUM7.12B

RegionNorth America

Expense Ratio0.43%

Beta0.47

IssuerFirst Trust

Inception DateMar 09, 2006

Dividend Yield3.6%

Asset ClassEquity

Index TrackedMorningstar Dividend Leaders Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume1,461,861

30 Day Avg. Volume1,132,617

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

53.16

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering86

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FDL Summary

FDL is an ETF that follows the Morningstar Dividend Leaders Index, focusing on U.S. companies that pay relatively high and steady dividends. It holds well-known names like Exxon Mobil and PepsiCo, along with other large firms in energy, health care, consumer staples, and more. Someone might invest in FDL to seek regular income from dividends while spreading money across many established companies instead of picking individual stocks. A key risk is that the fund is heavily tilted toward dividend-paying sectors like energy and may go up or down significantly 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 is leaning heavily on old-school dividend powerhouses, with Exxon and Chevron setting the pace as rising energy names that have been giving the fund a solid tailwind. Verizon has also been climbing, adding some spark from the communication services side. In health care, Merck is pulling its weight nicely, while Pfizer looks steadier, still working through some lingering headwinds. PepsiCo adds a dependable, consumer-defensive backbone. Overall, this is a U.S.-focused, income-first portfolio, concentrated in energy, health care, and defensive stalwarts rather than high-flying tech.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
XOM	Exxon Mobil	11.36%	$800.93M	$617.22B	35.70%	74 Outperform
CVX	Chevron	9.30%	$656.20M	$371.72B	20.90%	71 Outperform
VZ	Verizon	8.32%	$586.61M	$213.88B	16.76%	81 Outperform
PFE	Pfizer	5.98%	$421.75M	$154.44B	4.50%	74 Outperform
MRK	Merck & Company	5.54%	$390.75M	$289.49B	23.60%	80 Outperform
PEP	PepsiCo	5.01%	$353.09M	$219.73B	5.55%	78 Outperform
MO	Altria Group	4.79%	$337.86M	$112.25B	15.46%	64 Neutral
BMY	Bristol-Myers Squibb	3.42%	$241.09M	$122.45B	-2.24%	78 Outperform
CMCSA	Comcast	3.26%	$229.62M	$111.79B	-13.57%	74 Outperform
UPS	United Parcel	2.98%	$210.21M	$85.69B	-13.27%	72 Outperform

FDL Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

48.26

Positive

100DMA

45.71

Positive

200DMA

43.86

Positive

Market Momentum

MACD

0.45

Positive

RSI

50.97

Neutral

STOCH

18.73

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDL, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 50.67, equal to the 50-day MA of 48.26, and equal to the 200-day MA of 43.86, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 18.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDL.

FDL Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FDL	―	―	$7.12B	0.43%	73 Outperform
FDVV	―	―	$8.71B	0.15%	69 Neutral
FVD	―	―	$8.51B	0.61%	71 Outperform
SPYD	―	―	$7.38B	0.07%	67 Neutral
DHS	―	―	$1.43B	0.38%	71 Outperform
PEY	―	―	$1.03B	0.54%	68 Neutral

Performance Comparison

FDL

First Trust Morningstar Dividend Leaders Index Fund

49.88

9.07

22.22%

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.

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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