ETF Research and Analysis

by Abby Woodham
Disclosure: Morningstar Inc.'s Investment Management division licenses indexes to financial institutions as the tracking indexes for investable products, such as exchange-traded funds, sponsored by the financial institution.  Read more 

Bull Case

Dividend-paying companies historically outperformed non-dividend-paying firms and are the primary driver of historical stock returns.
This is one of the highest-yielding dividend ETFs available. Read more 

Bear Case

This fund is expensive compared with peer ETFs.
The high concentration of the portfolio's top holdings exposes investors to considerable idiosyncratic risk.
Because FDL has a significant overweighting in defensive stocks, even compared with other dividend ETFs, this fund is likely to face losses when interest rates eventually rise. Read more 

This ETF's Index Is a Victim of Its Own Success 
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