FGD Profile
The First Trust Dow Jones Global Select Dividend Index Fund is strategically designed to focus on high-dividend-yielding stocks from across developed markets. The fund typically invests at least 90% of its net assets, including any investment borrowings, in common stocks and depositary receipts that make up the index. This substantial allocation ensures that the fund’s performance closely mirrors that of its benchmark.
The underlying index of the fund is the Dow Jones Global Select Dividend Index, which comprises 100 carefully chosen stocks from the developed-market segment of the Dow Jones World Index. The index is weighted based on the indicated annual dividend yield, allowing it to emphasize high-yield dividend-paying stocks. This approach targets companies with a strong track record of paying substantial dividends, reflecting both their financial stability and commitment to returning value to shareholders.
The fund’s investment strategy revolves around capturing the performance of companies that not only provide attractive dividend yields but also demonstrate resilience and stability within the global equity markets. By concentrating on high dividend yield stocks, the fund aims to deliver steady income streams and potential capital appreciation, appealing to income-focused investors seeking consistent returns.
Overall, the First Trust Dow Jones Global Select Dividend Index Fund offers investors a pathway to access a diversified portfolio of high-yielding stocks from developed markets worldwide. The fund’s emphasis on dividend yield and rigorous selection criteria aims to deliver a balanced investment approach, combining income generation with the potential for capital growth. This fund is well-suited for those looking to benefit from global dividend opportunities while seeking to enhance their income through exposure to established and financially sound companies.
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