FID Profile
The First Trust S&P International Dividend Aristocrats Fund is designed to provide investors with exposure to high-quality, dividend-paying companies outside the United States. Under normal market conditions, the fund allocates at least 90% of its net assets, including any investment borrowings, to equity securities that make up its benchmark index. This index, known as the S&P International Dividend Aristocrats Index, includes firms that have demonstrated a consistent commitment to dividend payments.
The S&P International Dividend Aristocrats Index specifically tracks companies from developed markets outside the U.S. that have a proven track record of increasing or maintaining dividend payouts for at least ten consecutive years. This rigorous criterion helps ensure that only financially stable and reliable firms are included in the index, highlighting their resilience and sustained profitability. Companies featured in the index are often characterized by strong cash flows and robust financial management.
The fund's investment strategy focuses on maintaining a diversified portfolio of these high dividend yielding stocks, aiming to offer a steady income stream through dividends while providing potential capital appreciation. By investing in this fund, shareholders gain access to a global array of dividend aristocrats, which can offer attractive yields compared to their peers. The fund may hold securities across various sectors and regions, enhancing its ability to withstand economic fluctuations and market volatility.
As a fund concentrated on international dividend aristocrats, the First Trust S&P International Dividend Aristocrats Fund may be subject to additional risks, such as currency fluctuations and geopolitical instability affecting non-U.S. markets. Investors should consider these factors and assess how they align with their investment goals and risk tolerance before investing. The fund's focus on consistent dividend payers provides an opportunity for those seeking reliable income and stability in their equity investments.
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