What this ETF is trying to do

The FIRST TRUST DIVIDEND STRENGTH ETF (ticker: FTDS) is an exchange-traded fund designed to focus on companies with strong dividends. An ETF is like a basket that holds many different stocks at once, allowing investors to own a small piece of many companies through a single investment.

What the numbers show

The current price of one share of FTDS is $62.95. Looking back at history, the estimated price from roughly one year ago was $55.05.

It is important to understand two different types of returns: price return (how much the share price changed) and total return (how much the price changed plus any cash paid out to you).

• One-Year Returns: The one-year price return was approximately 14.37%, while the one-year total return was higher at approximately 16.39%.

• Year-to-Date (YTD) Returns: So far this year, the price return is about 11.43%, and the total return is about 12.91%.

• Three-Year Returns: Over the last three years, the price return was approximately 49.46%, and the total return was approximately 58.45%.

If you had invested $10,000 in this ETF roughly one year ago (based on the estimated starting price), your investment's share price alone would have grown to approximately $11,436.55.

Income and distribution explanation

Some investors look for "distributions," which is cash paid out from the ETF to its shareholders. FTDS has a distribution yield of approximately 1.69%. This means the cash paid out is about 1.69% of the current share price. These payments usually happen every quarter (four times a year). While these payments provide cash, they are not the same as total return.

NAV erosion explanation

"NAV erosion" happens when the actual value of the assets inside an ETF drops significantly over time. For FTDS, the erosion-risk score is 100, and the data shows "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Positive Growth: The ETF has shown positive price returns and total returns over the one-year and three-year periods.

• Low Erosion Risk: Data indicates no price erosion has been detected.

• Income Rating: The fund has an income rating grade of "A."

Cons

• Lower Yield: The distribution yield of 1.69% may be considered low for investors who are looking specifically for high levels of immediate cash income.

Top Holdings

The following is a partial list of the largest companies held in this ETF (as of October 11, 2026):

• Cognizant Technology Solutions Corp: 2.62%

• Phillips 66: 2.48%

• HF Sinclair Corp: 2.41%

• APA Corp: 2.40%

• Qualcomm Inc: 2.31%

• Garmin Ltd: 2.28%

• Allegion PLC: 2.24%

• Quest Diagnostics Inc: 2.23%

• CDW Corp: 2.21%

• Broadridge Financial Solutions Inc: 2.17%

*Note: Holdings can change over time.*

Beginner takeaway

When looking at FTDS, it is helpful to distinguish between the rising share price and the total return, which includes cash distributions. This ETF has shown growth in both areas over the last three years without showing signs of NAV erosion.