First Trust Value Line Dividend ETF (FVD) invests in U.S. companies, selected from the 1700 companies that are covered by Value Line research services. The process starts with the identification of companies that score well on Value Line’s proprietary screens for safety – this includes screens for price stability, sales and profit consistency and balance sheet leverage. Stocks that rate well on these criteria, have dividend yields greater than the S&P 500 and market capitalizations over $1 billion are retained for the portfolio. Stocks are equal weighted and the portfolio is rebalanced every month.
Read the complete article at Seeking Alpha right here: https://seekingalpha.com/article/4206075-dividend-etfs-stock-selection-strategies-can-hurt-performance