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FDL - ETF AI Analysis

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FDL

First Trust Morningstar Dividend Leaders Index Fund (FDL)

Rating:71Outperform
Price Target:
FDL, the First Trust Morningstar Dividend Leaders Index Fund, has an overall rating that suggests it offers a solid but not flawless mix of income and stability for dividend-focused investors. Strong holdings like Verizon, PepsiCo, Medtronic, and Bristol-Myers Squibb support the fund with solid financial performance, good cash generation, and positive growth strategies, while more mixed names such as Philip Morris and Altria, which face leverage, declining volumes, and competitive pressures, likely weigh on the rating. The main risk is that many top holdings are mature, dividend-heavy companies, so the fund is somewhat concentrated in slower-growth, income-oriented businesses rather than high-growth sectors.
Positive Factors
Strong Recent Performance
The fund has delivered strong gains so far this year, supported by positive returns over the past few months.
Leading Dividend-Paying Companies
Several top holdings like Chevron, Philip Morris, and Altria have shown strong performance, helping support the ETF’s income and total return.
Defensive Sector Tilt
Heavy exposure to consumer defensive, utilities, and health care stocks can help provide some stability during market downturns.
Negative Factors
High Concentration in Top Holdings
A small group of companies makes up a large share of the portfolio, which increases the impact if any of these stocks run into trouble.
Several Weak Top Holdings
Some major positions like PepsiCo, Comcast, and Blackstone have shown weak recent performance, which can drag on overall returns.
Limited International Diversification
With almost all assets invested in U.S. companies, the fund offers little geographic diversification if the U.S. market struggles.

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 U.S. companies that pay relatively high and steady dividends. It holds well-known names like Chevron and PepsiCo, along with firms in utilities, consumer goods, health care, and more, so investors get income from many different sectors. Someone might invest in FDL if they want regular dividend payments plus the chance for long-term growth from large, established companies. A key risk is that dividend-focused stocks can still fall in value and will move up and down with the overall stock 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 classic U.S. dividend powerhouses, with Chevron and Philip Morris doing much of the heavy lifting as their shares have been rising and helping fuel the fund’s income story. Tobacco giant Altria has also been climbing, adding another tailwind. On the flip side, steady-but-sluggish names like Verizon and Pfizer have been more of a gentle drag than a disaster, while PepsiCo and Comcast have been losing a bit of steam. Overall, the ETF is tilted toward U.S. defensive sectors—consumer staples, utilities, and energy—rather than flashy growth names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Chevron8.38%$650.39M$392.01B30.01%
71
Outperform
Verizon7.53%$584.56M$195.46B9.16%
81
Outperform
Philip Morris6.07%$471.29M$297.41B17.10%
61
Neutral
Pfizer5.83%$452.51M$142.54B6.47%
74
Outperform
PepsiCo4.73%$367.52M$190.48B0.20%
78
Outperform
Altria Group4.18%$324.67M$114.09B10.60%
64
Neutral
Bristol-Myers Squibb3.69%$286.59M$133.41B47.66%
78
Outperform
Comcast2.91%$225.53M$85.03B-26.32%
74
Outperform
United Parcel2.90%$225.39M$88.59B23.34%
72
Outperform
Blackstone Group2.38%$184.64M$158.90B-25.03%
72
Outperform

FDL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
50.03
Positive
100DMA
49.69
Positive
200DMA
47.23
Positive
Market Momentum
MACD
RSI
STOCH
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 50.76, equal to the 50-day MA of 50.03, and equal to the 200-day MA of 47.23, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$7.76B0.43%
71
Outperform
$8.87B0.07%
68
Neutral
$8.31B0.62%
71
Outperform
$1.80B0.39%
69
Neutral
$1.57B0.38%
71
Outperform
$1.14B0.54%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDL
First Trust Morningstar Dividend Leaders Index Fund
51.48
10.96
27.05%
SPYD
SPDR Portfolio S&P 500 High Dividend ETF
FVD
First Trust Value Line Dividend Index Fund
RDIV
Invesco S&P Ultra Dividend Revenue 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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