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Is First Trust Dow Jones Global Select Dividend ETF (FGD) a Strong ETF Right Now?
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Designed to provide broad exposure to the Foreign Large Value ETF category of the market, the First Trust Dow Jones Global Select Dividend ETF (FGD - Free Report) is a smart beta exchange traded fund launched on 11/21/2007.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by First Trust Advisors, FGD has amassed assets over $1.35 billion, making it one of the larger ETFs in the Foreign Large Value ETF. This particular fund seeks to match the performance of the Dow Jones Global Select Dividend Index before fees and expenses.
The Dow Jones Global Select Dividend Index is an indicated annual dividend yield weighted index of 100 stocks selected from the developed-market portion of the Dow Jones World Index.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.55%.
It's 12-month trailing dividend yield comes in at 5.17%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Kiwoom Securities Co., Ltd. (039490.KS) accounts for about 2.65% of the fund's total assets, followed by Kohl's Corporation (KSS) and Enagas S.a. (ENG.SM).
Its top 10 holdings account for approximately 18.33% of FGD's total assets under management.
Performance and Risk
The ETF return is roughly 9.35% and is up roughly 39.68% so far this year and in the past one year (as of 04/28/2026), respectively. FGD has traded between $24.96 and $34.33 during this last 52-week period.
FGD has a beta of 0.66 and standard deviation of 13.15% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 105 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Dow Jones Global Select Dividend ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI) tracks FTSE All-World ex US High Dividend Yield Index and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Vanguard International High Dividend Yield Index Fund ETF Shares has $18.66 billion in assets, Schwab Fundamental International Equity ETF has $22.74 billion. VYMI has an expense ratio of 0.07% and FNDF changes 0.25%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is First Trust Dow Jones Global Select Dividend ETF (FGD) a Strong ETF Right Now?
Designed to provide broad exposure to the Foreign Large Value ETF category of the market, the First Trust Dow Jones Global Select Dividend ETF (FGD - Free Report) is a smart beta exchange traded fund launched on 11/21/2007.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by First Trust Advisors, FGD has amassed assets over $1.35 billion, making it one of the larger ETFs in the Foreign Large Value ETF. This particular fund seeks to match the performance of the Dow Jones Global Select Dividend Index before fees and expenses.
The Dow Jones Global Select Dividend Index is an indicated annual dividend yield weighted index of 100 stocks selected from the developed-market portion of the Dow Jones World Index.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.55%.
It's 12-month trailing dividend yield comes in at 5.17%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Kiwoom Securities Co., Ltd. (039490.KS) accounts for about 2.65% of the fund's total assets, followed by Kohl's Corporation (KSS) and Enagas S.a. (ENG.SM).
Its top 10 holdings account for approximately 18.33% of FGD's total assets under management.
Performance and Risk
The ETF return is roughly 9.35% and is up roughly 39.68% so far this year and in the past one year (as of 04/28/2026), respectively. FGD has traded between $24.96 and $34.33 during this last 52-week period.
FGD has a beta of 0.66 and standard deviation of 13.15% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 105 holdings, it effectively diversifies company-specific risk .
Alternatives
First Trust Dow Jones Global Select Dividend ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI) tracks FTSE All-World ex US High Dividend Yield Index and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Vanguard International High Dividend Yield Index Fund ETF Shares has $18.66 billion in assets, Schwab Fundamental International Equity ETF has $22.74 billion. VYMI has an expense ratio of 0.07% and FNDF changes 0.25%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.