FTDS Profile
The First Trust Dividend Strength ETF typically allocates at least 90% of its net assets, including any investment borrowings, to common stocks and real estate investment trusts (REITs) that are constituents of its underlying index. This index is specifically designed to target companies with robust balance sheets and a proven track record of consistently increasing their dividends. Such companies are characterized by strong financial health, durable cash flows, and sustained profitability, which underpin their ability to maintain and grow dividend payouts.
The ETF's investment focus is on well-capitalized firms that demonstrate resilience and stability in their financial performance. These companies are selected for their ability to generate reliable income and effectively manage their capital, providing a dependable dividend yield. By emphasizing companies with a history of rising dividends, the fund aims to offer investors exposure to stocks and REITs that not only contribute to a steady income stream but also have the potential for capital appreciation.
The underlying index incorporates a rigorous selection process to identify firms with superior financial metrics and a commitment to returning value to shareholders through regular dividend increases. This includes evaluating the companies’ balance sheets, cash flow stability, and profitability to ensure that they meet the criteria for inclusion. The ETF thus provides a strategic investment in high-quality dividend-paying assets that align with principles of financial strength and sustainability.
Managed by First Trust, the ETF leverages the firms extensive expertise in equity and income investing. First Trusts comprehensive research and analytical capabilities support the fund's goal of delivering attractive total returns through a blend of dividend income and potential stock appreciation. The firms focus on identifying financially strong companies with a commitment to dividend growth ensures that the ETF remains a compelling option for investors seeking both income and growth in their portfolios.
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