Dividend ETF (FID) Hits New 52-Week High

For investors seeking momentum, First Trust S&P International Dividend Aristocrats ETF FID is probably on radar. The fund just hit a 52-week high, and is up 20.4% from its 52-week low price of $14.93 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

FID in Focus

This product offers exposure to high dividend-yielding, non-U.S. companies that have followed a managed-dividends’ policy of increasing or maintaining payouts for at least 10 consecutive years. It has key holdings in financials, consumer discretionary, utilities and industrials that account for double-digit exposure each. It charges investors 60 basis points a year in fees (see: all the World ETFs here).

Why the Move?

The dividend corner of the broad investing world has been an area to watch lately given the market volatility arising from trade deal uncertainty. Dividend-paying securities are the major sources of consistent income for investors, creating wealth when returns from the equity market are at risk. This is because the companies that offer dividends act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis.

More Gains Ahead?

It seems that FID will remain strong given a higher weighted alpha of 12.30 and a lower risk as depicted by a 20-day volatility of 6.13%. As a result, there is definitely some promise left for investors who want to ride on this surging ETF a little further.

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First Trust S&P International Dividend Aristocrats ETF (FID): ETF Research Reports
 
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