FVD VS IDV
4 min read
By Ron Koren, ETF Insider

FVD VS IDV

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, providing investors with diversified exposure to 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 IDV (iShares International Select Dividend). We'll analyze critical aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

FVD Vs IDV: Overview

FVD and IDV are two distinct ETFs, each catering to a specific dividend-focused investment strategy. FVD, managed by First Trust Advisors, aims to provide exposure to high-quality U.S. dividend-paying stocks. On the other hand, IDV, offered by iShares, focuses on international dividend-paying companies. Understanding the overarching objectives of these ETFs is crucial in evaluating their suitability for an investor's portfolio.

FVD Vs IDV: Sectors and Top Holdings

When it comes to sectors and top holdings, FVD is inclined towards sectors like Consumer Staples, Financials, and Utilities. Its top holdings include companies like Procter & Gamble, Coca-Cola, and Verizon. In contrast, IDV invests in various international sectors such as Financials, Energy, and Telecommunications. The leading holdings of IDV encompass companies like Eni SpA, TotalEnergies, and Banco Santander. A thorough grasp of the sectors and top holdings aids investors in aligning their portfolio with their dividend income goals.

FVD  overlap FVD VS IDVFVD overlap FVD VS IDV

FVD Vs IDV: Capitalization and Investment Strategy

FVD boasts a substantial Asset Under Management (AUM), showcasing its popularity among investors looking for stable dividend income from U.S. equities. The investment strategy of FVD revolves around selecting and investing in dividend-paying stocks with solid fundamentals. IDV, as an international dividend ETF, provides exposure to companies with a consistent history of dividend distributions from around the world. The differing capitalization and investment strategies of these ETFs present investors with varying risk and return profiles to consider.

FVD Vs IDV: Tracking Methods and Exposure

FVD's primary goal is to mirror the performance of the Value Line Dividend Index, which consists of U.S. companies with a strong history of paying dividends. This tracking approach provides investors with a relatively stable income stream. In contrast, IDV seeks to track the Dow Jones EPAC Select Dividend Index, composed of non-U.S. companies with consistent dividend payments. The tracking methods and exposure strategies diverge, allowing investors to tailor their investment choices according to their geographic preferences and risk appetite.

Conclusion

FVD and IDV cater to investors seeking dividend income, each with its unique approach and geographic focus. If you're keen on exploring the intricacies of holdings, correlations, overlaps, and other insights, consider leveraging ETF Insider—an intuitive app that offers a wealth of information on various financial instruments. Through this user-friendly platform, investors can make more informed decisions aligned with their investment goals.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services. Always conduct thorough research and consider seeking advice from financial professionals before making any investment decisions.

Sources:

First Trust Advisors. (n.d.). FVD - First Trust Value Line Dividend Index Fund. Retrieved from [URL]
iShares by BlackRock. (n.d.). IDV - iShares International Select Dividend ETF. Retrieved from [URL]

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FAQ

  • Why is FVD better than IDV?

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

  • Does IDV beat FVD?

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

  • Should I invest in FVD or IDV?

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

  • Are FVD and IDV good investments?

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

  • What is the correlation between FVD and IDV?

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