FVD: A Low-Volatility Play That Might Surprise In A Correction


Volatility Ahead Warning Sign

JimVallee

Today, I would like to reassess the First Trust Value Line® Dividend Index Fund ETF (NYSEARCA:FVD), a smart-beta dividend ETF that favors low volatility and financial resilience. There are a few reasons why a fresh look is necessary. First, unlike a

Month FVD underperformance vs. IVV
January -2.37%
February -3.16%
March 0%

Metric Holdings as of April 18 Holdings as of January 16
Market Cap $77.088 billion $79.398 billion
EY 5.10% 5.12%
P/S 3.11 3.04
EPS Fwd 7.07% 8.22%
Revenue Fwd 3.74% 4.92%
ROE 28.12% 50.86%
ROA 7.41% 7.31%
NI Margin 14.66% 14.37%
Quant Valuation B- or better 16.35% 16.39%
Quant Valuation D+ or worse 51.89% 56.25%
Quant Profitability B- or better 84.69% 84.92%
Quant Profitability D+ or worse 5.83% 5.28%

Month DY Div Growth 3Y Div Growth 5Y
January 2.83% 8% 7.69%
April 2.87% 7.89% 7.56%

Portfolio FVD IVV SCHD
Initial Balance $10,000 $10,000 $10,000
Final Balance $10,888 $13,948 $11,161
CAGR 7.04% 30.50% 9.18%
Stdev 12.20% 13.47% 13.39%
Best Year 4.59% 26.32% 6.73%
Worst Year 4.10% 10.42% 4.57%
Max. Drawdown -9.76% -8.32% -9.35%
Sharpe Ratio 0.2 1.68 0.34
Sortino Ratio 0.29 3.72 0.56
Market Correlation 0.9 0.99 0.87
Upside Capture 44.51% 100.24% 49.68%
Downside Capture 110.54% 94.67% 109.12%



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