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First Trust Value Line® Dividend Index Fund (FVD)
  • Reorganization
    December 14, 2020 – First Trust Advisors L.P. (“FTA”) announced that the reorganization of First Trust Value Line® 100 Exchange-Traded Fund (NYSE Arca: FVL), an index based exchange-traded fund (“ETF”), managed by FTA, into First Trust Value Line® Dividend Index Fund (NYSE Arca: FVD), an index based ETF managed by FTA, was completed prior to the open of the NYSE Arca on December 14, 2020. The assets of FVL were transferred to, and the liabilities of FVL were assumed by, FVD. The shareholders of FVL received shares of FVD with a value equal to the aggregate net asset value of the shares of FVL held by them. The exchange of shares took place based upon FVL’s and FVD’s closing net asset values on December 11, 2020. The exchange ratio at which shares of FVL were exchanged for shares of FVD is 0.662214.  More information can be found here.
Investment Objective/Strategy - The First Trust Value Line® Dividend Index Fund is an exchange-traded index fund. The objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of the Value Line® Dividend Index.
There can be no assurance that the Fund's investment objectives will be achieved.
  • The index begins with the universe of stocks that Value Line® gives a SafetyTM Ranking of #1 or #2 using the Value Line® SafetyTM Ranking System. All registered investment companies, limited partnerships and foreign securities not listed in the U.S. are removed from this universe.
  • From those stocks, Value Line® selects those companies with a higher than average dividend yield, as compared to the indicated dividend yield of the Standard & Poor's 500 Composite Stock Price Index.
  • Value Line® then eliminates those companies with an equity market capitalization of less than $1 billion.
  • The index seeks to be equally weighted in each of the securities in the index. The index is rebalanced on the application of the above model on a monthly basis.
Fund Overview
Fund TypeEquity Income
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Fiscal Year-End12/31
ExchangeNYSE Arca
Inception Price$15.00
Inception NAV$14.32
Rebalance FrequencyMonthly
Gross Expense Ratio*0.71%
Net Expense Ratio*0.70%
* As of 5/1/2020
Expenses are capped contractually at 0.70% per year, at least until April 30, 2021.
Current Fund Data (as of 4/13/2021)
Closing NAV1$38.63
Closing Market Price2$38.61
Bid/Ask Midpoint$38.63
Bid/Ask Premium0.00%
30-Day Median Bid/Ask Spread30.03%
Total Net Assets$11,197,310,301
Outstanding Shares289,890,884
Daily Volume992,576
Average 30-Day Daily Volume1,294,145
Closing Market Price 52-Week High/Low$38.69 / $27.83
Closing NAV 52-Week High/Low$38.67 / $27.82
Number of Holdings (excluding cash)189
Top Holdings (as of 4/13/2021)*
Holding Percent
Oracle Corporation 0.59%
Public Storage 0.58%
The Home Depot, Inc. 0.57%
United Parcel Service, Inc. (Class B) 0.57%
Arthur J. Gallagher & Co. 0.56%
Avangrid, Inc. 0.56%
BlackRock, Inc. 0.56%
Corning Incorporated 0.56%
Garmin Ltd. 0.56%
NextEra Energy, Inc. 0.56%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Overall Morningstar RatingTM (as of 3/31/2021)4

Among 1,138 funds in the Large Value category. This fund was rated 4 stars/1,138 funds (3 years), 3 stars/1,007 funds (5 years), 5 stars/729 funds (10 years) based on risk adjusted returns.
Distribution Information
Dividend per Share Amt (as of 4/14/2021)5$0.1761
30-Day SEC Yield (as of 3/31/2021)61.98%
Unsubsidized 30-Day SEC Yield (as of 3/31/2021)71.98%
12-Month Distribution Rate (as of 3/31/2021)82.10%
Index Yield (as of 3/31/2021)92.65%
For funds with certain equity strategies, due to the negative economic impact across many industries caused by the COVID-19 outbreak, certain of the issuers of the securities included in the fund may elect to reduce the amount of dividends and/or distributions paid in the future. As a result, the "12-Month Distribution Rate," which is based on the fund's trailing 12-month ordinary distributions, will likely be higher, and in some cases significantly higher, than the actual 12-month distribution rate achieved by the fund.
Fund Characteristics (as of 3/31/2021)11
Maximum Market Cap.$534,262
Median Market Cap.$36,203
Minimum Market Cap.$1,917
Price/Cash Flow14.28
Bid/Ask Premium/Discount (as of 4/13/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 176 41 4 ---
Days Traded at Discount 77 20 4 ---
Top Sector Exposure (as of 4/13/2021)
Utilities 19.94%
Financials 17.36%
Industrials 16.51%
Information Technology 10.59%
Consumer Staples 10.40%
Health Care 9.29%
Materials 4.67%
Real Estate 3.84%
Communication Services 3.58%
Consumer Discretionary 3.30%
Energy 0.52%
Month End Performance (as of 3/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 8.60% 8.60% 40.18% 10.89% 10.57% 11.80% 9.92%
After Tax Held 8.39% 8.39% 38.83% 9.82% 9.53% 10.70% 8.47%
After Tax Sold 5.09% 5.09% 23.68% 7.94% 7.83% 9.15% 7.57%
Market Price 8.56% 8.56% 40.23% 10.89% 10.57% 11.79% 9.92%
Index Performance **
Value Line® Dividend Index 8.81% 8.81% 41.60% 11.84% 11.48% 12.71% N/A
Dow Jones U.S. Select Dividend™ Index 19.70% 19.70% 61.70% 10.72% 11.18% 12.39% N/A
S&P 500 Index 6.17% 6.17% 56.35% 16.78% 16.29% 13.91% 10.35%
Quarter End Performance (as of 3/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 8.60% 8.60% 40.18% 10.89% 10.57% 11.80% 9.92%
After Tax Held 8.39% 8.39% 38.83% 9.82% 9.53% 10.70% 8.47%
After Tax Sold 5.09% 5.09% 23.68% 7.94% 7.83% 9.15% 7.57%
Market Price 8.56% 8.56% 40.23% 10.89% 10.57% 11.79% 9.92%
Index Performance **
Value Line® Dividend Index 8.81% 8.81% 41.60% 11.84% 11.48% 12.71% N/A
Dow Jones U.S. Select Dividend™ Index 19.70% 19.70% 61.70% 10.72% 11.18% 12.39% N/A
S&P 500 Index 6.17% 6.17% 56.35% 16.78% 16.29% 13.91% 10.35%
3-Year Statistics (as of 3/31/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FVD 16.10% -2.68 0.82 0.63 0.93
Dow Jones U.S. Select Dividend™ Index 20.53% -4.94 1.00 0.53 0.90
S&P 500 Index 18.40% --- 1.00 0.85 1.00
Standard Deviation is a measure of price variability (risk). Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark.Beta is a measure of price variability relative to the market. Sharpe Ratio is a measure of excess reward per unit of volatility. Correlation is a measure of the similarity of performance.

*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are determined by using the midpoint of the national best bid offer price ("NBBO") as of the time that the fund's NAV is calculated. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. The fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

**Performance information for the Value Line® Dividend Index is for illustrative purposes only and does not represent actual fund performance.
Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index.

On December 15, 2006, the fund acquired the assets and adopted the performance history of the First Trust Value Line® Dividend Fund, a closed-end fund. The investment goals, strategies and policies of the fund are substantially similar to those of the predecessor fund. Performance information for periods prior to December 15, 2006 is based on the performance history of the predecessor fund and reflects the operating expenses of the predecessor fund.

Dow Jones U.S. Select Dividend™ Index - The Index consists of 100 widely-traded, dividend-paying stocks derived from the Dow Jones U.S.Total Market IndexSM.

S&P 500 Index - The Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 Fund shares are purchased and sold on an exchange at their market price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 The median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for the fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
5 Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
6 The 30-day SEC yield is calculated by dividing the net investment income per share earned during the most recent 30-day period by the maximum offering price per share on the last day of the period and includes the effects of fee waivers and expense reimbursements, if applicable.
7 The unsubsidized 30-day SEC yield is calculated the same as the 30-day SEC yield, however it excludes contractual fee waivers and expense reimbursements.
8 12-Month Distribution Rate is calculated by dividing the sum of the fund's trailing 12-month ordinary distributions paid or declared by the NAV price. Distribution rates may vary.
9 Index yield represents the weighted average trailing 12-month dividend of the constituents of the Value Line® Dividend Index.
10 Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.
11 All market capitalization numbers are in USD$ Millions.
12 Inception Date is 8/19/2003

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on the NYSE Arca, Inc.

The fund's return may not match the return of the Value Line® Dividend Index.  Securities held by the fund will generally not be bought or sold in response to market fluctuations.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units. If the fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to the fund's net asset value and possibly face delisting.

Risk Considerations

The fund's shares will change in value and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular security owned by the fund, fund shares or securities in general may fall in value. There can be no assurance that the fund's investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The COVID-19 pandemic may last for an extended period of time, and will continue to impact the economy for the foreseeable future.

The fund may invest in securities issued by companies concentrated in a particular industry. The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's distributor.

Value Line® and Value Line® Dividend Index are trademarks or registered trademarks of Value Line, Inc. (“Value Line”) and have been licensed for use for certain purposes by First Trust. The Fund is not sponsored, endorsed, recommended, sold or promoted by Value Line and Value Line makes no representation regarding the advisability of investing in products utilizing such strategy.

©2021 Morningstar, Inc. All Rights Reserved. The Morningstar RatingTM information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
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