FIRST TRUST VALUE LINE DIVIDEND INDEX UCITS ETF

Issuer: First Trust

Asset Class: Equity

TER: 70bps

Trading Currency: USD

Pays Income: False

Listing Date: 14 Feb 2020

Ticker: FVD

ISIN: IE00BKVKW020

This fund offers a strategic approach to dividend investing by tracking the Value Line® Dividend Index. The underlying index employs a proprietary, rules-based methodology to select companies from a universe of U.S.-listed stocks. The selection process is rigorous, focusing on companies that are ranked favorably for safety (rated 1 or 2 by Value Line's Safety™ Rank system) and that also offer a dividend yield higher than that of the S&P 500 Index. This dual screening for both financial strength and attractive yield aims to identify high-quality, stable companies. The selected constituents are then equally weighted, which promotes diversification and reduces concentration risk from any single large-cap stock.

The investment strategy is designed for those seeking a combination of income and potential capital appreciation from the U.S. equity market. By concentrating on financially sound companies with consistent dividend payouts, the portfolio may exhibit lower volatility compared to broader market indices, making it a potentially suitable core holding for long-term, income-oriented investors. The equal-weighting scheme ensures that portfolio performance is driven by the broad success of its constituents rather than the movements of a few market giants. This product could appeal to investors looking to add a quality and value tilt to their portfolio, with an emphasis on generating a regular income stream from established American businesses.