FDL - ETF AI Analysis
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First Trust Morningstar Dividend Leaders Index Fund (FDL)
FDL, the First Trust Morningstar Dividend Leaders Index Fund, earns a solid overall rating largely because it is built around strong dividend-paying companies like Verizon, PepsiCo, Bristol-Myers Squibb, and Accenture, which show healthy cash flows, solid financial performance, and generally positive business outlooks. However, holdings such as Philip Morris and Altria introduce some drag due to high leverage, technical weakness, and challenges in their core cigarette businesses. The main risk factor is the fund’s concentration in mature, high-dividend sectors, which can face slower growth and company-specific issues like legal challenges and declining product demand.
FDL vs. SPDR S&P 500 ETF (SPY)
- AUM
- 8.30B
- Region
- North America
- Expense Ratio
- 0.43%
- Beta
- 0.33
- Issuer
- First Trust
- Inception Date
- Mar 09, 2006
- Dividend Yield
- 3.60%
- Asset Class
- Equity
- Index Tracked
- Morningstar Dividend Leaders Index
FDL Summary
FDL is an exchange-traded fund that follows the Morningstar Dividend Leaders Index, focusing on U.S. companies that pay strong, regular dividends. It holds well-known names like Chevron and PepsiCo and spreads investments across many sectors, including consumer defensive, utilities, energy, and health care. Someone might invest in FDL to seek steady income from dividends while still getting broad diversification across large, established companies. A key risk is that stock prices and dividend payments can go up or down with the overall market and the fortunes of these companies.
How much will it cost me?
This ETF has an expense ratio of 0.43%, which means you’ll pay about $4.30 per year for every $1,000 you invest. That’s higher than the average low-cost index ETF because, although it tracks an index, it focuses on a specialized group of high-dividend stocks, which typically comes with a slightly higher fee.
What would affect this ETF?
FDL could benefit if interest rates fall or stay stable, since its U.S. dividend-paying leaders in defensive sectors like consumer staples, utilities, and health care may look more attractive for income-focused investors, and strong performance from top holdings such as Chevron, Pfizer, and Verizon would support returns. On the negative side, rising interest rates, slower U.S. economic growth, pressure on tobacco and energy regulations, or company-specific problems at major holdings could reduce investor demand for high-dividend stocks and weigh on the fund’s price.
FDL Top 10 Holdings
FDL leans heavily on classic dividend powerhouses, with Chevron and Philip Morris doing much of the heavy lifting as energy and tobacco stay in favor. Pfizer has been quietly rising, adding a steady health care backbone, while Altria’s resilience keeps the fund’s income story intact despite industry headwinds. On the softer side, Verizon has been lagging and PepsiCo looks mixed, taking a bit of shine off the consumer and telecom exposure. Overall, this is a U.S.-centric, defensive-tilted portfolio built around cash-generating giants rather than fast-growth names.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 CVX | Chevron | 9.36% | $784.86M | $465.33B | 53.41% | 71Outperform |
 PM | Philip Morris | 6.52% | $546.83M | $325.43B | 43.24% | 61Neutral |
 PFE | Pfizer | 6.56% | $549.84M | $173.95B | 25.65% | 74Outperform |
 VZ | Verizon | 6.54% | $548.41M | $185.39B | 14.81% | 81Outperform |
 PEP | PepsiCo | 5.03% | $421.56M | $187.16B | -6.92% | 78Outperform |
 MO | Altria Group | 5.00% | $419.32M | $129.80B | 36.58% | 64Neutral |
 ACN | Accenture | 3.44% | $288.21M | $152.63B | 3.61% | 79Outperform |
 UPS | United Parcel | 3.23% | $270.98M | $92.10B | 13.88% | 72Outperform |
 BMY | Bristol-Myers Squibb | 3.00% | $251.65M | $127.71B | 36.96% | 78Outperform |
 CMCSA | Comcast | 2.55% | $214.10M | $82.45B | -15.01% | 74Outperform |
FDL Technical Analysis
Price Trends
Market Momentum
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 53.84 is above the 20-day moving average (MA) of 51.41, above the 50-day MA of 51.35, and above the 200-day MA of 49.67, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 69.43 is Neutral, neither overbought nor oversold. The STOCH value of 76.65 is Neutral, 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 | $53.84 | $55.00(2.15% Upside) | $8.30B | 0.43% | 71Outperform |
 FVD | $50.71 | $56.22(10.87% Upside) | $8.05B | 0.62% | 71Outperform |
 SPYD | $49.06 | $52.80(7.63% Upside) | $7.62B | 0.07% | 68Neutral |
 DHS | $119.29 | $128.53(7.74% Upside) | $1.65B | 0.38% | 71Outperform |
 RDIV | $60.80 | $66.97(10.15% Upside) | $1.71B | 0.39% | 69Neutral |
 PEY | $24.41 | $25.21(3.27% Upside) | $1.13B | 0.68% | 68Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FDL | First Trust Morningstar Dividend Leaders Index Fund | 53.84 | 13.13 | 32.25% | |
| FVD | First Trust Value Line Dividend Index Fund | 50.71 | 6.77 | 15.40% | |
| SPYD | SPDR Portfolio S&P 500 High Dividend ETF | 49.06 | 8.65 | 21.41% | |
| DHS | WisdomTree U.S. High Dividend Fund | 119.29 | 24.96 | 26.46% | |
| RDIV | Invesco S&P Ultra Dividend Revenue ETF | 60.80 | 10.92 | 21.89% | |
| PEY | Invesco High Yield Equity Dividend Achievers ETF | 24.41 | 4.76 | 24.20% |
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.