Why is FVD better than DES?

FVD may be considered better than DES for some investors due to its specific focus, offering diversification.

DES's performance relative to FVD will vary over time, depending on market conditions.

Should I invest in FVD or DES?

The choice between FVD and DES should align with your investment goals, risk tolerance, and desired exposure.

Are FVD and DES good investments?

Both FVD and DES can be suitable investments depending on individual investment strategies, goals, and risk profiles.

What is the correlation between FVD and DES?

The correlation between FVD and DES can vary over time, reflecting differences in performance.

4 min read

By Ron Koren, ETF Insider

FVD VS DES

Exchange-Traded Funds (ETFs) have gained immense popularity in the world of investing, offering investors a convenient way to access a diversified portfolio across various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: FVD (First Trust Value Line Dividend) and DES (WisdomTree U.S. SmallCap Dividend Fund). We'll delve into essential aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

FVD Vs DES: Overview

FVD and DES are two distinct ETFs designed to cater to different investment strategies within the dividend-focused segment. FVD seeks to replicate the performance of the Value Line Dividend Index, composed of dividend-paying companies with a history of consistent dividends. DES, on the other hand, targets dividend-paying small-cap companies in the U.S. equity market. Let's explore the nuances of these strategies in the following sections.

FVD Vs DES: Sectors and Top Holdings

The FVD ETF focuses on companies across various sectors that exhibit a strong commitment to paying dividends. Its top holdings often include well-established names like Microsoft, Procter & Gamble, and Johnson & Johnson. In contrast, DES zeroes in on small-cap dividend-paying stocks, with top holdings that could comprise companies such as Mercury General Corporation, Tootsie Roll Industries, and Lindsay Corporation. A closer look at sectors and top holdings can assist investors in aligning their portfolio with specific sector preferences and risk appetite.

FVD overlap FVD VS DES

FVD Vs DES: Capitalization and Strategy

FVD boasts a substantial asset under management (AUM), indicative of its popularity among investors seeking stable income through dividend-paying stocks. Its investment strategy revolves around tracking the Value Line Dividend Index, which includes companies with a track record of consistent dividend distributions. DES, with its focus on small-cap dividend stocks, offers investors an opportunity for potential growth alongside dividends. These differences in capitalization and strategy underscore the importance of understanding the potential risks and returns associated with each ETF.

FVD Vs DES: Tracking and Exposure

The FVD ETF's primary goal is to mirror the performance of the Value Line Dividend Index, providing investors with exposure to dividend-paying companies across a wide range of sectors. In contrast, DES aims to replicate the performance of the WisdomTree U.S. SmallCap Dividend Index, focusing exclusively on small-cap dividend stocks. Both ETFs use different indices as benchmarks for their tracking, giving investors distinct ways to gain exposure to dividend-paying companies.

Conclusion

FVD and DES offer investors unique opportunities to invest in dividend-paying companies with different characteristics. Those seeking to gain deeper insights into the holdings, correlations, overlaps, and other valuable information related to these ETFs can turn to ETF Insider—an intuitive and user-friendly app designed to provide comprehensive details about financial instruments. With ETF Insider, investors can make more informed decisions based on their investment goals and risk tolerance.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services. It's essential for investors to conduct thorough research and consider seeking advice from qualified financial professionals before making any investment decisions.

Sources:

https://finance.yahoo.com/ FVD ETF issuer
https://finance.yahoo.com/quote/FVD/ FVD ETF official page

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FAQ

Why is FVD better than DES?
FVD may be considered better than DES for some investors due to its specific focus, offering diversification.
Does DES beat FVD?
DES's performance relative to FVD will vary over time, depending on market conditions.
Should I invest in FVD or DES?
The choice between FVD and DES should align with your investment goals, risk tolerance, and desired exposure.
Are FVD and DES good investments?
Both FVD and DES can be suitable investments depending on individual investment strategies, goals, and risk profiles.
What is the correlation between FVD and DES?
The correlation between FVD and DES can vary over time, reflecting differences in performance.