MarketDesk Focused US Dividend ETF

FDIV

Market cap $70.6M

The MarketDesk Focused U.S. Dividend ETF has underperformed with a 1.9% yield and 7.7% total return YTD, compared to broader market returns. FDIV's quant-driven strategy and sectoral allocation to Consumer Defensive stocks have not panned out, unlike SPYD's Real Estate-heavy portfolio. FDIV is positioned for a recession, but the resilient economy has hindered its performance, making it hard to recommend it over SPYD or the broader market.

MarketDesk Focused U.S. Dividend ETF is a relatively new dividend fund aiming to solve the income vs. capital appreciation dilemma. Its ER is 0.35% and the fund has $103 million in assets under management. The FDIV ETF's expected dividend yield is 2.78%, which is below low-cost peers like DIVB, SCHD, and VYM. While its 14.90x forward P/E valuation is competitive, its growth rates are not. 25/61 selections totaling 43% of the fund by weight have negative three-year free cash flow growth rates, and FDIV's net estimated sales and earnings growth rates are virtually flat.