At a glance
FDD charges 0.56% a year, above the 0.28% average of the 6 funds most like it (the 6th cheapest of 7). It has $820.8M in assets, the 7th largest of that group; it paid 5.54% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +24.4% with distributions reinvested (S&P 500: +11.5%), the best of those 7 funds; over three years it returned +30.6% a year. At its worst it fell 41.4% in the 2020 crash (S&P 500: 33.7%) and 34.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 11 months and 23 months after the lows. Its ten largest positions make up 42.8% of the fund, out of 30 in all.
The short version
First Trust STOXX European Select Dividend Index Fund (FDD) is an index ETF. It holds the 30 highest-yielding dividend stocks, measured against their home markets, picked from Europe's 600 largest companies. Its trailing 12-month yield was 5.54% as of October 27, 2026, paid quarterly. The fund leans toward financial companies and UK, French and Dutch stocks. The trade-off is cost: its 0.56% expense ratio is double the 0.28% average of similar Europe funds.
Price history
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FDD +24.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FDD official prospectus, to Dec 31, 2025 | — | +61.85% | — | +12.38% | +9.11% | +1.99% |
| FDD price data to Oct 27, 2026 | +14.7% | +24.4% | +30.6% | +12.5% | +10.8% | +2.6% |
- Over the year to Oct 27, 2026, FDD returned +24.4%, 1st of 7 among similar funds.
- Its 5-year annualized return was +12.5% and its 10-year +10.8%.
- In the 2020 COVID crash it fell 41.4% and regained its old high 11.1 months after the low.
- Its worst full calendar year was 2008 (-60.5%); its best was 2025 (+62.5%).
- The deepest fall in its price history was 74.7% (Oct 31, 2007 to Mar 9, 2009), recovered by Mar 18, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +14.7% | — |
| 2025 | +62.5% | +61.85% |
| 2024 | +0.3% | +0.60% |
| 2023 | +14.2% | +13.42% |
| 2022 | -16.1% | -15.67% |
| 2021 | +16.0% | +15.07% |
| 2020 | -3.7% | -2.64% |
| 2019 | +23.8% | +23.09% |
| 2018 | -9.0% | -8.83% |
| 2017 | +19.1% | +19.04% |
| 2016 | +2.2% | +2.58% |
| 2015 | -2.9% | — |
| 2014 | -1.9% | — |
| 2013 | +17.1% | — |
| 2012 | +9.5% | — |
| 2011 | -8.9% | — |
| 2010 | +1.8% | — |
| 2009 | +31.3% | — |
| 2008 | -60.5% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 74.4% over that stretch · deepest drop along the way 74.7%, back to its old high 192.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 41.4% over that stretch · deepest drop along the way 41.4%, back to its old high 11.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 32.7% over that stretch · deepest drop along the way 34.9%, back to its old high 23.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9000 | |
| 2025 | $0.7000 | -18.6% |
| 2024 | $0.8600 | +3.6% |
| 2023 | $0.8300 | +20.3% |
| 2022 | $0.6900 | +38.0% |
| 2021 | $0.5000 | -5.7% |
| 2020 | $0.5300 | -19.7% |
| 2019 | $0.6600 | +11.9% |
| 2018 | $0.5900 | +55.3% |
| 2017 | $0.3800 | -34.5% |
| 2016 | $0.5800 | +11.5% |
| 2015 | $0.5200 | -7.1% |
| 2014 | $0.5600 | +12.0% |
| 2013 | $0.5000 | -19.4% |
| 2012 | $0.6200 | -6.1% |
| 2011 | $0.6600 | +17.9% |
| 2010 | $0.5600 | +12.0% |
| 2009 | $0.5000 | -58.7% |
| 2008 | $1.2100 |
What's inside
As of Jun 30, 2026, the fund held 30 securities; the ten largest made up 42.79% of assets.
| Holding | Weight | |
|---|---|---|
| LEGAL & GENERAL GROUP PLC | 6.10% | |
| TAYLOR WIMPEY PLC | 4.62% | |
| AEGON LTD | 4.24% | |
| B&M EUROPEAN VALUE RETAIL PLC | 4.17% | |
| ABN AMRO BANK NV | 4.06% | |
| NATWEST GROUP PLC | 3.97% | |
| SIGNIFY NV | 3.97% | |
| INVESTEC PLC | 3.92% | |
| AKER BP ASA | 3.91% | |
| TELEPERFORMANCE SE | 3.84% | |
| NN GROUP NV | 3.54% | |
| POSTE ITALIANE SPA | 3.52% | |
| ASR NEDERLAND NV | 3.47% | |
| COVIVIO SA | 3.24% | |
| BNP PARIBAS SA | 3.13% |
By country
United Kingdom 24.48%France 23.9%Netherlands 17.97%Germany 7.05%Bermuda 4.24%By asset type
Stocks 97.28%Preferred stock 2.28%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $12.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.13%, +3.56%, -3.50%.
How it works
FDD tracks the STOXX Europe Select Dividend 30 Index, which is run by STOXX Limited. The fund normally puts at least 90% of its net assets in the index's stocks. The index starts with the STOXX Europe 600, which covers Europe's 600 largest companies. Only companies that pay dividends and meet the index's dividend and liquidity tests can be picked. Each one gets an "outperformance factor" score. This compares the company's net dividend yield with the yield of its home market, and the 30 highest scores make the cut.
A company already in the index stays as long as it ranks in the top 60. This buffer cuts down on needless trading. Stocks are weighted by net dividend yield rather than company size, with a 15% cap on any one stock. That is why a homebuilder like Taylor Wimpey (4.6%) can outweigh BNP Paribas (3.1%). The index is reconstituted and rebalanced every quarter, and the fund follows shortly after. Portfolio turnover was 31%.
As of June 30, 2026, the fund held stocks directly: 97.3% common stock and 2.3% preferred stock, with no derivatives. It is concentrated. The 10 largest positions made up 42.8% of assets, led by Legal & General at 6.1%. The holdings are priced in foreign currencies, so a stronger US dollar lowers the fund's value.
What it really costs
- FDD charges 0.56% a year, versus an average of 0.28% for the similar funds below (6th of 7, cheapest first).
- Of that, 0.4% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
FDD's main draw is a high, quarterly dividend stream from European companies chosen for their yield, not their size.
FDD could add high income and European stocks that most US-focused portfolios hold little of. Its yield was 5.54% as of October 27, 2026, and its expense ratio is 0.56%. Its downturn record is the catch. From October 2007 to March 2009 it fell 74.7%. It lost 60.5% in calendar 2008 alone on a price basis and did not regain its old high until March 2025, about 16 years later. It dropped 41.4% in the 2020 COVID crash and took about 11 months to recover. It fell 34.9% in 2022 and took about 23 months. Someone who had to sell shares in those years would have locked in steep losses. Dividends from banks and insurers can also be cut in a crisis, which would shrink the income. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors wanting European dividends: the trailing yield was 5.54% as of October 27, 2026, paid quarterly.
- Investors who want a dividend tilt that weights 30 stocks by yield, not size, unlike broad funds such as VGK.
- Patient holders who can ride out deep drops, like the 34.9% fall in 2022, without having to sell.
Look elsewhere if
- Cost-conscious investors: the 0.56% expense ratio compares with 0.06% for VGK and 0.09% for IEUR and BBEU.
- Those wanting broad diversification: just 30 stocks, top 10 at 42.8% of assets, heavy in financials and UK, French and Dutch issuers.
- Anyone who may need to sell in a crash: it fell 74.7% in 2007–2009 and took about 16 years to recover.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FDD this fund | — | 0.56% | $820.8M | +24.4% | +30.6% |
| BBEU JPMorgan BetaBuilders Europe ETF | 10% | 0.09% | $9.36B | +9.5% | +19.8% |
| FEZ SPDR EURO STOXX 50 ETF | 10% | 0.29% | $4.35B | +5.6% | +20.6% |
| IEV iShares Europe ETF | 9% | 0.61% | $1.63B | +9.5% | +19.4% |
| EZU iShares MSCI Eurozone ETF | 9% | 0.51% | $9.91B | +6.8% | +21.0% |
| VGK Vanguard FTSE Europe ETF | 9% | 0.06% | $38.51B | +11.9% | +19.7% |
| IEUR iShares Core MSCI Europe ETF | 9% | 0.09% | $8.95B | +9.6% | +19.9% |
Questions investors ask
Does FDD pay monthly dividends?
No. FDD pays dividends quarterly, not monthly. Over the 12 months to October 27, 2026, it paid $1.06 per share, a trailing yield of 5.54%. The payout moves with the dividends of its 30 holdings, and the prospectus warns that companies are not required to keep paying dividends. Many of its holdings are banks and insurers, whose dividends can be cut in a recession, so the income can vary from year to year.
What's the difference between FDD and VGK?
VGK, the Vanguard FTSE Europe ETF, owns a broad slice of European stocks for a 0.06% expense ratio. FDD holds only 30 high-yield stocks for 0.56%. They share only about 9% of their holdings. FDD has done better lately: a 24.4% one-year return and 30.6% a year over three years as of October 27, 2026, against 11.9% and 19.7% for VGK as of October 30, 2026. FDD has also had much deeper losses in past crashes.
Is FDD good for retirement income?
It can provide high income, but with high risk. FDD yielded 5.54% as of October 27, 2026, and pays quarterly. Its long record is uneven. Through December 31, 2025, it returned 9.11% a year over 10 years but just 1.99% a year since its 2007 launch. That gap reflects a 74.7% fall in 2007–2009 that took about 16 years to recover. It leans on banks and insurers, whose dividends can be cut in a crisis.
What is FDD's expense ratio?
FDD's expense ratio is 0.56%, according to its prospectus filed January 28, 2026. That includes a 0.40% management fee, and there is no fee waiver. It is about double the 0.28% average of the six Europe stock ETFs it was compared with, and it ranks sixth of seven on cost. Broad funds such as Vanguard FTSE Europe ETF (0.06%) and iShares Core MSCI Europe ETF (0.09%) cost far less, though they don't focus on dividends.
What are FDD's top holdings?
As of June 30, 2026, FDD's largest holdings were Legal & General Group (6.1%), Taylor Wimpey (4.6%), Aegon (4.2%), B&M European Value Retail (4.2%) and ABN AMRO Bank (4.1%). The fund holds 30 companies, and the top 10 made up 42.8% of assets. By country, the UK was 24.5%, France 23.9% and the Netherlands 18.0%. The list changes because the index is reconstituted every quarter based on dividend yields.