FDD - ETF AI Analysis
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First Trust Stoxx European Select Dividend Index Fund (FDD)
FDD, the First Trust Stoxx European Select Dividend Index Fund, has a solid but not outstanding rating, reflecting a mix of strong dividend-focused value stocks and some near-term risks. Strong contributors like ABN AMRO and NatWest support the fund with solid financials, attractive valuations, and positive technical or corporate signals, while holdings such as Legal & General and Aegon add value appeal but face issues like weaker cash flow and bearish trends. The main risk factor is that many top holdings share similar challenges around cash flow, leverage, or negative technical momentum, which can increase volatility even as investors benefit from high dividend yields.
FDD vs. SPDR S&P 500 ETF (SPY)
- AUM
- 892.40M
- Region
- Europe
- Expense Ratio
- 0.56%
- Beta
- 0.67
- Issuer
- First Trust
- Inception Date
- Aug 27, 2007
- Dividend Yield
- 5.55%
- Asset Class
- Equity
- Index Tracked
- STOXX Europe Select Dividend 30
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?
This ETF has an expense ratio of 0.56%, which means you’ll pay about $5.60 per year for every $1,000 invested. That’s higher than the average low-cost index ETF because it follows a more specialized, high-dividend European index rather than a broad, plain-vanilla market benchmark.
What would affect this ETF?
FDD could benefit if Europe’s economy stays stable or improves, supporting banks, insurers, and consumer-focused companies like Legal & General, Teleperformance, and B&M to keep paying attractive dividends, especially if interest rates eventually fall and make dividend income more appealing. On the downside, a European slowdown, financial sector stress, or higher-for-longer interest rates and new regulations on banks and insurers could pressure profits and lead to dividend cuts, which would hurt this income-focused ETF.
FDD Top 10 Holdings
FDD is leaning heavily on European financials, with names like ABN AMRO and NatWest quietly powering the fund thanks to their rising share prices and solid dividends. Legal & General and Aegon add more insurance muscle, though their performance has been more mixed, occasionally losing steam. On the consumer side, B&M European Value Retail has been a bright spot, climbing steadily and giving the fund a helpful boost, while homebuilder Taylor Wimpey has lagged and acted as a bit of a drag. Overall, it’s a developed Europe income play, anchored in banks, insurers, and retailers.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 GB:LGEN | Legal & General | 6.16% | $54.18M | GBP 15.97B | 23.12% | 61Neutral |
 FR:TEP | Teleperformance | 6.23% | $54.84M | EUR 4.70B | 17.09% | 72Outperform |
 GB:BME | B&M European Value Retail SA | 5.70% | $50.16M | GBP 2.81B | 53.23% | 66Neutral |
 GB:TW | Taylor Wimpey | 4.51% | $39.67M | GBP 2.74B | -25.05% | 65Neutral |
 NL:ABN | ABN AMRO Group N.V. | 3.99% | $35.07M | EUR 33.30B | 57.19% | 74Outperform |
 NL:AGN | Aegon NV | 3.93% | $34.61M | EUR 11.22B | 14.92% | 61Neutral |
 GB:INVP | Investec | 3.75% | $32.97M | GBP 11.18B | 2.60% | 62Neutral |
 GB:NWG | NatWest Group | 3.65% | $32.07M | GBP 50.79B | 15.97% | 75Outperform |
 NL:ASRNL | ASR Nederland N.V | 3.68% | $32.37M | EUR 14.82B | 30.88% | 66Neutral |
FDD Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDD, the sentiment is Negative. The current price of 19.05 is above the 20-day moving average (MA) of 19.00, below the 50-day MA of 19.68, and above the 200-day MA of 18.50, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 83.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDD.
FDD Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| FDD | $19.05 | $20.50(7.61% Upside) | $892.40M | 0.56% | 61Neutral |
 FDV | $34.30 | $35.81(4.41% Upside) | $998.19M | 0.50% | 72Outperform |
 DIV | $19.24 | $20.45(6.31% Upside) | $758.91M | 0.45% | 69Neutral |
 DTH | $55.66 | $62.47(12.24% Upside) | $638.86M | 0.58% | 61Neutral |
 DWX | $47.06 | ― | $516.19M | 0.45% | 57Neutral |
 FIDI | $28.85 | $31.88(10.50% Upside) | $396.94M | 0.18% | 66Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FDD | First Trust Stoxx European Select Dividend Index Fund | 19.05 | 3.79 | 24.84% | |
| FDV | Federated Hermes U.S. Strategic Dividend ETF | 34.30 | 6.40 | 22.96% | |
| DIV | Global X SuperDividend US ETF | 19.24 | 2.96 | 18.22% | |
| DTH | WisdomTree International High Dividend Fund | 55.66 | 8.57 | 18.21% | |
| DWX | SPDR S&P International Dividend ETF | 47.06 | 5.40 | 12.96% | |
| FIDI | Fidelity International High Dividend ETF | 28.85 | 5.21 | 22.05% |
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.