First Trust Morningstar Dividend Leaders Index Fund

FDL

Market cap $6.05B

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on March 9, 2006.

Market looks overheated? Earn stable income with high-dividend ETFs?

High-yielding stocks get a lot of attention. But a lot of them have underperformed over the long run. Which are better? High yielders or dividend growth stocks?

Market volatility sparks income hunt -- dividend ETFs like SCHD, CGDV, SPYD, IDV, FDL & DIVO under $50 offer steady yields and value.

First Trust Morningstar Dividend Leaders Index Fund offers high yield and capital preservation for income-focused investors seeking risk diversification. FDL's defensive, value-oriented portfolio provides resilience during market downturns, but underperforms broad market benchmarks, like IWB, in total returns. The ETF's high concentration in top holdings and elevated expense ratio pose risks, making it better suited as a portfolio complement, not a core holding.

If you are looking for a source of income that outlives you, look into dividend ETFs that are time-tested over decades.

Launched on March 9, 2006, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.

I downgrade FDL to hold due to its heavy energy and health care exposure, which are underperforming and dragging on returns. The recent portfolio rebalance increased FDL's risk and volatility, with 55% concentration in its top 10 holdings and poor sector outlooks. While FDL offers a strong 4% yield and dividend growth, its sluggish price momentum and sector struggles limit upside potential.

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Morningstar Dividend Leaders ETF (FDL) is a passively managed exchange traded fund launched on 03/09/2006.

Holding a bunch of stocks from the same sector doesn't mean you're diversified. In fact, it could make your portfolio more vulnerable. Small positions (