FGD ETF: What Is It? — Returns, Expense Ratio, Holdings & Alternative ETFs
An ETF that pursues high dividend income by investing in high-dividend stocks from developed markets worldwide. Strict screening criteria are applied, including a requirement of consecutive dividend payments over the past 5 years.
SubscribeWhat is this ETF?
It tracks the Dow Jones Global Select Dividend Index on a 1:1 basis. It selects the top 100 stocks with high dividend yields from developed markets worldwide, including the United States, and holds them on a dividend-yield-weighted basis.
It is well suited for investors seeking stable cash flow and portfolio diversification through global high-dividend stocks.
This passive (index-tracking) ETF was launched by First Trust in 2007.
How does it invest?
| Item | Details |
|---|---|
| Tracked Index | Dow Jones Global Select Dividend Index |
| Management Style | Passive (Index Tracking) |
| Rebalancing Frequency | Annual |
| Dividend Schedule | Quarterly |
| Total Expense Ratio | 0.55% |
It targets only companies that have paid dividends for 5 consecutive years and have positive earnings per share. Stocks are weighted by dividend yield to maximize the overall portfolio's dividend appeal.
- Global high-dividend portfolio spanning the developed world
- Strict financial-health and dividend-sustainability screening applied
Size and Costs
Assets under management (AUM) stand at $1.6B, with a total expense ratio of 0.55% annually.
Compared with peer global dividend ETFs such as VYMI and VIGI, FGD tends to focus more squarely on yield itself, making relatively higher income returns a possibility.
Performance and Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeIt generally follows the broader trend of global value and high-dividend sectors, showing downside resilience during periods of elevated market volatility, supported by relatively stable dividend income.
Demand from investors seeking income-oriented global asset allocation has remained steady, with capital inflow pace adjusting in line with currency movements and the global rate environment.
Strengths and Weaknesses
Its high dividend yield and global diversification are strengths, while potential concentration in specific value sectors and a somewhat elevated expense ratio are factors to consider.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
VYMI and VIGI, shown in the table, are Vanguard's flagship global dividend ETFs and carry lower expense ratios than FGD. Products such as DFAI and DFIC, meanwhile, are built on Dimensional Fund Advisors' approach and are characterized by broader diversification across a wider range of securities. VYMI, in particular, invests across a broader universe of holdings, while VIGI focuses on dividend growth. If you want to focus exclusively on developed markets outside the US, SCHY is an option to consider, while those seeking global high dividends including emerging markets may also look at SDIV. Investors aiming to capture both dividend growth and value may find DLS a meaningful comparison point.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VYMI | Vanguard International High Dividend Yield ETF | $102.29 | -0.5% | $22.0B | 0.07% | 3.64% | +17.5% |
 DFAI | Dimensional International Core Equity Market ETF | $41.68 | -0.6% | $18.2B | 0.18% | 2.43% | +12.7% |
 DFIC | Dimensional International Core Equity 2 ETF | $37.80 | -0.5% | $15.4B | 0.22% | 2.53% | +13.6% |
 DFAX | Dimensional World ex U.S. Core Equity 2 ETF | $35.87 | -0.4% | $11.9B | 0.28% | 2.5% | +12.1% |
 VIGI | Vanguard International Dividend Appreciation ETF | $99.20 | -0.7% | $9.3B | 0.07% | 2.11% | +10.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 RHI | Robert Half Inc | 0.04% | $43.02 | +1.6% | $4.4B | 35.4 | 4.95% |
 WU | Western Union Company | 0.03% | $6.94 | +1.2% | $2.2B | 6.6 | 13.05% |
 VIV | Telefonica Brasil SA ADR | 0.02% | $11.66 | +0.4% | $18.6B | 15.0 | 7.74% |
 CALM | Cal-Maine Foods Inc | 0.03% | $67.09 | -2.5% | $3.1B | 56.9 | 1.61% |
 QPX | AdvisorShares Q Dynamic Growth ETF | 0.01% | $46.02 | -0.3% | $0.0M | - | - |
 TU | Telus Corp | 0.01% | $8.78 | -1.6% | $14.0B | - | 10.02% |
 OMF | OneMain Holdings Inc | 0.01% | $55.35 | -0.3% | $6.3B | 8.4 | 7.59% |
Investor Checklist
Here is a key checklist to review before investing in FGD. Dividend sustainability, expense ratio, and the global macroeconomic backdrop should be weighed together for a prudent decision.
| Checklist Item | What to Verify | Current Status |
|---|---|---|
| 💵 Dividend Yield | Recent distributions and trailing yield | Top tier |
| 📊 Sector Weighting | Check concentration in financials, industrials, etc. | Diversification needed |
| 📈 Global Economy | Monitor developed-market business cycles | Requires review |
| 💰 Expense Ratio | Assess cumulative cost impact over long-term holding | Somewhat high |
Note that high-dividend stocks can lose their yield advantage versus bonds in rising-rate environments, and during a global downturn, dividend-cut risks at underlying companies can weigh heavily on share prices.
This is a global vehicle well suited to income-oriented investors who prioritize stable cash flow. That said, factoring in the expense ratio and sector concentration, pairing it with other dividend ETFs for a balanced allocation can be an effective approach.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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