Why is FVD better than PFM?

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

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

Should I invest in FVD or PFM?

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

Are FVD and PFM good investments?

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

What is the correlation between FVD and PFM?

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

4 min read

By Beqa Bumbeishvili, ETF Insider

FVD VS PFM

Exchange-Traded Funds (ETFs) have reshaped the investment landscape, offering investors diverse exposure across a wide array of sectors and asset classes. In this article, we'll undertake an in-depth analysis of two prominent ETFs: FVD (First Trust Value Line Dividend Index Fund) and PFM (Invesco Dividend Achievers ETF). We'll explore a range of key aspects, including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

FVD Vs PFM: Overview

FVD and PFM are distinct ETFs that cater to different investment strategies within the realm of dividends. While FVD is designed to provide exposure to high-quality dividend-paying stocks, PFM focuses on companies with a history of consistent dividend growth. This divergence in approach results in varying investment profiles and potential outcomes, which we'll delve into further in the subsequent sections.

FVD Vs PFM: Sectors and Top Holdings

The FVD ETF emphasizes value-driven dividend stocks, encompassing sectors such as finance, healthcare, and consumer goods. Its top holdings include companies like Verizon Communications, Chevron Corporation, and Pfizer Inc. PFM, on the other hand, concentrates on dividend achievers, including businesses like 3M Company, Johnson & Johnson, and The Coca-Cola Company. Understanding the sectors and top holdings of these ETFs can aid investors in aligning their investment goals with the appropriate fund.

FVD overlap FVD VS PFM

FVD Vs PFM: Capitalization and Strategy

FVD boasts a substantial asset under management (AUM), reflecting its appeal among investors who prioritize value and dividends. The strategy of FVD revolves around investing in stocks that exhibit attractive dividend characteristics and are potentially undervalued. PFM's strategy centers on companies with a history of consistent dividend growth, making it appealing to those seeking long-term income and potential appreciation. The differences in capitalization and strategy underline the contrasting approaches that these ETFs adopt, influencing potential returns and associated risks.

FVD Vs PFM: Tracking and Exposure

FVD tracks the Value Line Dividend Index, aiming to replicate the performance of high-dividend-yield companies with strong fundamentals. On the other hand, PFM tracks the NASDAQ US Dividend Achievers Select Index, focusing on companies that have a track record of increasing dividends annually. While FVD seeks to capture value and dividends, PFM emphasizes dividend growth potential. Understanding the tracking methodologies and exposure strategies of these ETFs is pivotal for investors to make informed decisions aligning with their investment preferences.

Conclusion

In the world of ETFs, FVD and PFM stand out as distinctive options for investors interested in dividend-focused strategies. Whether you're drawn to value-driven dividend stocks or companies with a history of consistent dividend growth, these ETFs offer avenues for potential income and capital appreciation. For those who seek comprehensive insights into holdings, correlations, overlaps, and more, the ETF Insider provides an invaluable resource. With its user-friendly app, investors can gain in-depth information about various financial instruments, empowering them to make well-informed investment choices.

Disclaimer: This article is for informational purposes only and does not provide investment advisory services.

Sources:

First Trust Advisors. (n.d.). FVD - First Trust Value Line Dividend Index Fund. Retrieved from https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FVD
Invesco. (n.d.). PFM - Invesco Dividend Achievers ETF. Retrieved from https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=PFM

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FAQ

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