FDL vs. XLU - ETF Comparison
FDL - First Trust Morningstar Dividend Leaders Index Fund
The First Trust Morningstar Dividend Leaders Index Fund (FDL) is an equity ETF that tracks the Morningstar Dividend Leaders Index, providing exposure to large-cap and mega-cap companies with a history of consistent and sustainable dividend payments. The fund's focus on dividend yield and value securities makes it an attractive option for investors seeking income generation and stability in their portfolios.
XLU - Utilities Select Sector SPDR Fund
The Utilities Select Sector SPDR Fund is an equity ETF that tracks the S&P Utilities Select Sector Index, providing exposure to the U.S. utilities sector. It offers a low-risk investment option with relatively high distribution yields, making it suitable for investors seeking to establish low-risk equity exposure or enhance their portfolio's current returns. The fund's market capitalization-weighted portfolio is composed of large-cap stocks, with a focus on the utilities sector.
| FDL | XLU | |
|---|---|---|
| Fund Name | First Trust Morningstar Dividend Leaders Index Fund | Utilities Select Sector SPDR Fund |
| Fund Provider | First Trust | State Street |
| Index | Morningstar Dividend Leaders Index | S&P Utilities Select Sector Index |
| Asset Class | Equity | Equity |
| Listing | US-listed | US-listed |
| Expense Ratio | 0.45% | 0.09% |
| Inception Date | 2006-03-09 | 1998-12-16 |
| Number Of Holdings | 102 | 32 |
| Region | United States | United States |
| Investment Style | Blend | Value |
| Market Cap | Large-Cap | Large-Cap |
| Sector | Utilities | Utilities |
| Leveraged | Non-leveraged | Non-leveraged |
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Key Metrics
Performance Metrics
Risk Metrics
Detailed Returns
Benchmark Comparison
Key Metrics
Performance Metrics
Risk Metrics
Detailed Returns
Benchmark Comparison
Performance Analysis
The performance analysis examines historical data to assess the returns of the investment strategy, including key metrics such as Cumulative returns, End of Year (EoY) returns, and risk-adjusted returns like the Sharpe ratio or the Sortino ratio.
Cumulative Returns
End of Year Returns Table
End of Year Returns
Risk Analysis
The risk analysis refers to an assessment of potential negative events that could lead to a loss of capital. Conducting a risk analysis can help in deciding whether an investment should be made. This is done using risk metrics such as drawdowns, volatility and beta which reflect stakeholders' confidence in the consistency of an investment strategy.
Drawdowns
Drawdowns Table
Monte Carlo Simulation
The Monte Carlo simulation is a statistical method used to forecast portfolio returns by generating a wide range of potential outcomes through random sampling from historical asset price data. It helps investors assess the potential risk and return of a portfolio under various market conditions. The simulation takes into account the initial investment and optionally simulates cash flow scenarios like fixed contributions, fixed withdrawals, or percentage withdrawals.
IMPORTANT: The forecast generated through Monte Carlo simulations is purely hypothetical and does not guarantee future returns. Investment decisions should be made with consideration of various factors, and past performance is not indicative of future results.