Is First Trust Dow Jones Global Select Dividend ETF (FGD) a Strong ETF Right Now?

A smart beta exchange traded fund, the First Trust Dow Jones Global Select Dividend ETF (FGD) debuted on 11/21/2007, and offers broad exposure to the Foreign Large Value ETF category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.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.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexManaged by First Trust Advisors, FGD has amassed assets over $922.66 million, making it one of the average sized ETFs in the Foreign Large Value ETF. Before fees and expenses, FGD seeks to match the performance of the Dow Jones Global Select Dividend Index.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 ExpensesFor 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.Operating expenses on an annual basis are 0.56% for this ETF, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 4.96%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.Looking at individual holdings, Kohl's Corporation (KSS) accounts for about 3.06% of total assets, followed by Spark New Zealand Limited (SPK.NZ) and Enagas S.a. (ENG.SM).FGD's top 10 holdings account for about 17.4% of its total assets under management.Performance and RiskYear-to-date, the First Trust Dow Jones Global Select Dividend ETF has added about 35.43% so far, and was up about 26.14% over the last 12 months (as of 10/21/2025). FGD has traded between $21.80 $29.67 in this past 52-week period. FGD has a beta of 0.76 and standard deviation of 13.79% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 107 holdings, it effectively diversifies company-specific risk .AlternativesFirst 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 ETF (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 ETF has $12.84 billion in assets, Schwab Fundamental International Equity ETF has $18.23 billion. VYMI has an expense ratio of 0.17% 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 ETFBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust Dow Jones Global Select Dividend ETF (FGD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks