FDL: FIRST TRUST MORNINGSTAR DIVIDEND LEADERS INDEX FUND
What this ETF is trying to do
The First Trust MorningStar Dividend Leaders Index Fund (FDL) is an ETF that focuses on companies that pay dividends. It holds a variety of stocks, with its top holdings including companies like Chevron Corp (7.44%), Verizon Communications Inc (7.19%), and Philip Morris International Inc (6.07%). As of October 4, 2026, the fund held a total of 101 different holdings.
What the numbers show
As of October 9, 2026, the current price of one share is $49.77.
There are two ways to look at the returns: price return (which only tracks the share price) and total return (which includes the share price plus distributions).
• Year-to-Date (YTD): The price return is 12.25%, while the total return is 15.41%.
• One Year: The price return is 15.85%, while the total return is 20.59%.
• Three Year: The price return is 50.23%, while the total return is 71.69%.
To put this in perspective, the estimated price from roughly one year ago was $42.96. If you had invested $10,000 based on that estimated price, the price-only increase (15.85%) would have grown that amount to approximately $11,585.
Income and distribution explanation
This ETF pays out cash to investors, which is called a distribution. It usually pays these distributions quarterly. Over the last 12 months, it has made 4 payouts.
The distribution yield is 3.89%. It is important for beginners to know that a distribution yield is not the same as a total return. While a high yield provides cash income, it does not guarantee that the original investment value will stay the same or grow.
NAV erosion explanation
"NAV erosion" happens when the actual value of the fund's underlying assets declines over time. StockValueFinder uses an erosion-risk score to measure this.
FDL has an erosion score of 100, and the erosion label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag for this fund.
Pros
• Strong total returns over the one-year and three-year periods.
• Provides regular quarterly cash distributions.
• No detected price erosion according to the erosion-risk score.
Cons
• The distribution yield is relatively modest compared to some high-income funds.
• Performance is tied to the stock market, meaning the share price can go up or down.
Beginner takeaway
FDL is a fund for investors who want a mix of share-price growth and regular cash income. It has shown a positive trend in both its price and total returns over the last three years. While it provides a steady distribution yield, investors should always look at the total return to see the full picture of how the investment performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | CHEVRON CORP | CVX | 8.98% |
| 2 | VERIZON COMMUNICATIONS INC | VZ | 7.34% |
| 3 | PFIZER INC | PFE | 6.53% |
| 4 | PHILIP MORRIS INTERNATIONAL INC | PM | 6.40% |
| 5 | PEPSICO INC | PEP | 5.04% |
| 6 | ALTRIA GROUP INC | MO | 4.72% |
| 7 | BRISTOL-MYERS SQUIBB CO | BMY | 3.21% |
| 8 | UNITED PARCEL SERVICE INC CLASS B | UPS | 3.04% |
| 9 | ACCENTURE PLC CLASS A | ACN | 2.89% |
| 10 | COMCAST CORP CLASS A | CMCSA | 2.59% |