First Trust ETF Joins the Hunt for Foreign Dividends
FGD should yield 4.34% (4.94% index yield minus the 0.60% expense). The back test numbers are impressive, as they always are, for higher returns with less volatility than the broad market. The underlying index has averaged 25.17% annualized for five years.
Stocks in the fund meet several screens, including dividends paid being greater than or equal to the company's five-year average. Constituents must also satisfy stringent payout ratio and trading volume rules.
FGD strikes me as being well diversified compared to similar funds, so it might be less reactive -- though not immune -- to typical sector or single-country blowups.
The financial sector is on shaky ground, impacting the direction now. I think that will be the case until the entire yield curve normalizes. Its weight in the UK could also be a drag, as that economy is showing signs of weakening from its own exposure to the housing saga.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV