What this ETF is trying to do

The First Trust STOXX European Select Dividend Index Fund (FDD) is an ETF that focuses on European companies. Based on its name, it seeks to track an index of European stocks that are selected for their dividends.

What the numbers show

As of October 9, 2026, the share price of FDD was $18.62.

When looking at performance, it is important to distinguish between price return (how much the share price changed) and total return (which includes the share price change plus distributions).

• Year-to-Date (YTD): The price return is 6.4%, while the total return is approximately 11.55%.

• One Year: The price return is approximately 16.89%, and the total return is approximately 23.69%.

• Three Year: The price return is approximately 72.81%, and the total return is approximately 106.53%.

For a simple example, the estimated price from roughly one year ago was $15.93. If an investor had put $10,000 into the shares at that estimated price, the value of those shares alone (not including distributions) would have grown based on the one-year price return.

Income and distribution explanation

FDD pays out cash to investors, which is known as a distribution. It usually pays these distributions quarterly. The distribution yield is approximately 5.68%.

It is important for beginners to remember that a high distribution yield alone can be misleading. While distributions provide cash income, they do not guarantee that the original investment (the principal) will stay the same or grow.

NAV erosion explanation

"NAV erosion" happens when the underlying value of an ETF's assets declines over time. Investors who want steady income care about principal stability so their original investment doesn't disappear.

For FDD, the erosion-risk score is 100, and the erosion severity is labeled as "good." The data states "No price erosion detected," and the severe erosion-risk flag is false.

Top Holdings

This ETF holds 34 different assets. Because the list is partial, we only see the Top Holdings. As of October 4, 2026, the largest holdings included:

• Legal & General Group PLC: 5.81%

• Teleperformance SE: 5.5%

• B&M European Value Retail PLC: 4.99%

• Taylor Wimpey PLC: 4.62%

• ABN Amro Bank NV: 4.4%

Holdings can change over time.

Pros

• Strong total returns over the one-year and three-year periods.

• Provides regular quarterly cash distributions.

• No price erosion detected according to the erosion-risk score.

Cons

• The ETF is focused on a specific region (Europe), which may limit diversification.

Beginner takeaway

FDD is an ETF that provides exposure to European dividend-paying stocks. It has shown growth in both its share price and its total return over the last three years. While it offers a distribution yield of about 5.68%, investors should always look at the total return to see the full picture of how the investment performed.