Exchange-Traded Funds (ETFs) have revolutionized the investment landscape, offering investors diversified exposure to various sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: FVD (First Trust Value Line Dividend ETF) and DGRO (iShares Core Dividend Growth ETF). We will explore a range of key factors, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methods, and exposure.
FVD and DGRO represent distinct investment strategies within the dividend-focused ETF realm. While FVD emphasizes high dividend yields from a range of sectors, DGRO targets companies with a consistent history of dividend growth. These differing approaches result in unique portfolios and risk profiles, which we'll delve into further in the upcoming sections.
The FVD ETF is designed to capture dividends from a diverse set of sectors, including financials, consumer goods, and healthcare. Its top holdings include companies like AT&T, Verizon, and Exxon Mobil. In contrast, DGRO is invested in companies with a strong record of increasing dividends over time, such as Microsoft, Apple, and Johnson & Johnson. Understanding the sectors and top holdings can aid investors in selecting the ETF that aligns with their income and growth objectives.
FVD overlap FVD VS DGRO
FVD boasts a substantial Asset Under Management (AUM), indicative of its popularity among investors seeking reliable income from dividends. On the other hand, DGRO's investment strategy centers around identifying companies with the potential for consistent dividend growth. The differences in capitalization and investment strategy give rise to distinct potential for returns and risk, necessitating careful consideration by investors.
FVD tracks an index of companies with attractive dividend yields, aiming to provide investors with income. DGRO's focus is on companies that demonstrate the ability to grow dividends over time, offering both income and potential capital appreciation. The tracking methods diverge; FVD follows an index based on dividend yields, while DGRO tracks an index emphasizing dividend growth. Comprehending these tracking and exposure nuances empowers investors to make well-informed decisions.
FVD and DGRO are distinct ETFs catering to different investment preferences within the dividend space. For individuals seeking comprehensive insights into holdings, correlations, overlaps, and more, the ETF Insider platform serves as the ultimate tool. With its user-friendly app, it offers comprehensive information on these financial instruments and others, aiding investors in making informed choices aligned with their financial goals.
Disclaimer: This article is for informational purposes only and does not offer investment advisory services.
Sources:
First Trust Advisors: FVD ETF Overview
iShares: DGRO ETF Summary
Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the FVD First Trust Value Line Dividend Index Fund, access our dedicated page now.
FVD may be considered better than DGRO for some investors due to its specific focus, offering diversification.
DGRO's performance relative to FVD will vary over time, depending on market conditions.
The choice between FVD and DGRO should align with your investment goals, risk tolerance, and desired exposure.
Both FVD and DGRO can be suitable investments depending on individual investment strategies, goals, and risk profiles.
The correlation between FVD and DGRO can vary over time, reflecting differences in performance.