The fund tracks the Dorsey Wright Momentum Plus Dividend Yield Index. From a universe of large- and mid-cap stocks, it selects, according to set rules, stocks that combine high relative strength with high dividend yields.

It suits factor-minded investors who want to secure dividend income while staying exposed to stocks with strong trends.

It is a passive (index-tracking) ETF managed by First Trust.

The strategy first screens for stocks with strong trends using a relative strength methodology, then includes those with high dividend yields from within that group. It is a rules-based approach that combines the momentum factor and the dividend factor to pursue trend and income at the same time.

• A combination of relative strength and high dividends
• Rules-based stock selection

Assets under management (AUM) stand at $72.4M, and the Expense Ratio is 0.60% per year.

Unlike pure momentum factor products, it adds a dividend yield requirement, which gives it a stronger income profile.

Because the fund holds stocks with strong trends, it tends to gain relatively more traction in strong markets, and it may experience volatility from fading momentum during corrections.

As a product that combines factors, its fund flows tend to shift with the market's style preferences. Income demand from investors who want dividends and trend together underpins inflows, while outflow pressure can emerge when the factors fall out of favor.

Its strength is that it reflects both momentum and dividends, while its weakness is that losses can compound when both factors underperform at the same time.

MTUM, SPMO, and JMOM, shown in the table, are large-cap products that focus on the pure relative strength and momentum factor without a dividend requirement, and they prioritize trend exposure over income. Investors who place more weight on dividend income can also consider broad high-dividend and dividend-growth core ETFs such as SCHD, VYM, and DVY, which focus on dividends themselves without any momentum condition.

Here are the points to review before investing in DDIV. Since it is a factor strategy that combines momentum and dividends, it is wise to check the nature of the strategy, the expense cost, stock turnover, and dividend sustainability in advance.

Volatility can increase in periods when fading momentum and shrinking dividends overlap, and trading costs from frequent stock replacement can also affect long-term performance. In stretches when the style is out of favor, underperformance relative to the market may persist.

It is a worthwhile option for investors who want to hold trend and dividend income in a single product. Those who want pure momentum or pure high-dividend exposure should also compare alternative ETFs that focus on each factor.