DIVI vs FDD

DIVIAFranklin International Core Dividend Tilt Index ETF

FDDBFirst Trust STOXX European Select Dividend Index Fund

In short

DIVI A tilt, not a screen: DIVI optimizes a broad developed-markets ex-North America index toward higher yield while limiting drift from that parent. Core international shape, income lean, 0.09% a year.

FDD Most international dividend funds spread themselves across the whole developed world. FDD skips the detour: about 30 of Europe's highest-yielding stocks, screened for dividend track record, in a fund that has been running since 2007.

Stated mandate

DIVI The Fund seeks to track, before fees and expenses, the Morningstar Developed Markets ex-North America Dividend Enhanced Select Index. Its index methodology seeks higher dividend yield than the parent index while maintaining core exposure to developed markets outside North America.

FDD The Fund seeks to track, before fees and expenses, the price and yield performance of the STOXX Europe Select Dividend 30 Index through an indexing strategy.

Why people hold it

• DIVI Costs 0.09% a year, while the median fund in its international-dividend cohort charges closer to 0.50%.
• The index takes a broad developed ex-North America benchmark and optimizes it for higher yield while limiting expected tracking error to that parent. Income lean, core shape.sec.gov
• Tracks its index closely, among the strongest implementations in its peer group.
• A multi-billion-dollar fund holding about 80 developed-market names, paying distributions quarterly.

• FDD Pure Europe, no global filler: about 30 high-yielders drawn from the STOXX Europe 600, not a worldwide blend with a European slice tucked inside.yahoo.com
• Yield alone doesn't earn a spot. Constituents need a non-negative five-year dividend-per-share growth record and a dividend-to-earnings ratio of 60% or less.yahoo.comstoxx.com
• It has tracked its index tightly, which is the entire job of an index fund.
• Listed in 2007 and pays quarterly, so there's a long live record through Europe's rougher stretches rather than a backtest.

Worth knowing

• DIVI The tilt is mild by design: the index caps how far it can drift from its parent, so it reaches for less yield than funds built on hard high-yield screens.sec.gov
• Cheaper options sit in the same cohort (VYMI at 0.07%, SCHY at 0.08%), so the fee edge is over the category median, not over the largest index shops.
• Today's strategy dates to 2022, when the fund was renamed from Franklin LibertyQ International Equity Hedged ETF, so its 2016-onward record covers a different mandate.sec.gov

• FDD 0.56% a year sits above the cohort median of 0.50% and well above broad rivals like VYMI (0.07%) and SCHY (0.08%), which fish in a much wider pond than Europe.
• About 30 holdings means every name pulls real weight, and a yield-first screen can crowd into whichever sectors happen to be paying the most.
• Holdings trade in euros, pounds and other European currencies, so the dollar's moves land in your return right alongside the stocks'.

Full DIVI profile⁠

Full FDD profile⁠