FGD: A Low-Risk, High-Yield Option for Investors in the Foreign Large Value ETF Segment

The First Trust Dow Jones Global Select Dividend ETF (FGD) is a smart beta exchange traded fund that was launched on 11/21/2007, designed to offer broad exposure to the Foreign Large Value ETF category of the market. The fund is managed by First Trust Advisors and has amassed over $763.81 million in assets, making it one of the average-sized ETFs in this space.

FGD seeks to match the performance of the Dow Jones Global Select Dividend Index, which is an annual dividend yield weighted index of 100 stocks selected from the developed-market portion of the Dow Jones World Index. The fund has a 12-month trailing dividend yield of 5.12% and an expense ratio of 0.56%, which is on par with most peer products in the space.

FGD's top 10 holdings account for about 15.12% of its total assets under management, with Enagas S.a. (ENG.SM) accounting for about 1.95% of the fund's total assets. The ETF has gained about 23.99% so far this year and was up about 28.85% in the last one year (as of 06/17/2025). It has a beta of 0.74 and a standard deviation of 15.21% for the trailing three-year period, making it a low-risk choice in this particular space.

While FGD offers a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market, there are other ETFs in the space that investors could consider, such as Vanguard International High Dividend Yield ETF (VYMI) and Schwab Fundamental International Equity ETF (FNDF). VYMI has an expense ratio of 0.17% and FNDF charges 0.25%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF.

In conclusion, FGD is a low-risk option for investors seeking to invest in the Foreign Large Value ETF segment of the market with a focus on dividend yields. While it may not be the cheapest option in terms of expense ratio, its low beta and standard deviation make it a suitable choice for those looking for stability and consistent returns in their investment portfolio. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on the latest developments in the ETF investing universe, visit Zacks ETF Center.