First Trust STOXX European Select Dividend ETF FDD is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 28.2% from its 52-week low price of $10.99/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
FDD in Focus
The underlying STOXX Europe Select Dividend 30 Index consists of 30 high dividend-yielding securities selected from the STOXX Europe 600 Index. The product charges 59 bps in annual fees and yields 6.32% annually (see: all European Equity ETFs here).
Why the Move?
Dividend-paying stocks provide a steady income stream and help mitigate potential losses during weaker market periods. These stocks offer the best of both worlds — safety in the form of payouts and stability in the form of mature companies that are less volatile to the large swings in stock prices.
More Gains Ahead?
Currently, FDD has a Zacks ETF Rank #3 (Hold) and Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 22.36 (as per Barchart.com), which gives cues of a further rally.
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First Trust STOXX European Select Dividend ETF (FDD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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