At a glance
FDL charges 0.43% a year, above the 0.33% average of the 8 funds most like it (the 8th cheapest of 9). It has $7.29B in assets, the 3rd largest of that group; it paid 3.68% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +26.1% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +23.9% a year. At its worst it fell 39.7% in the 2020 crash (S&P 500: 33.7%) and 16.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 4 months after the lows. Its ten largest positions make up 48.1% of the fund, out of 100 in all.
The short version
First Trust Morningstar Dividend Leaders Index Fund (FDL) is an index ETF that holds about 100 high-yielding US stocks. Morningstar picks them for consistent, well-covered dividends. The fund weights each stock by how many dollars of dividends it pays, so big payers such as Chevron, Verizon and Philip Morris carry heavy weights. Its 0.43% expense ratio is well above similar funds such as HDV (0.08%) and SCHD (0.06%).
Price history
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FDL +26.1% 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 | |
|---|---|---|---|---|---|---|
| FDL official prospectus, to Dec 31, 2025 | — | +14.88% | — | +12.98% | +10.78% | +8.28% |
| FDL price data to Oct 27, 2026 | +21.7% | +26.1% | +23.9% | +14.4% | +11.7% | +9.0% |
- Over the year to Oct 27, 2026, FDL returned +26.1%, 4th of 9 among similar funds.
- Its 5-year annualized return was +14.4% and its 10-year +11.7%.
- In the 2020 COVID crash it fell 39.7% and regained its old high 9.5 months after the low.
- Its worst full calendar year was 2008 (-31.0%); its best was 2021 (+26.1%).
- The deepest fall in its price history was 65.9% (May 22, 2007 to Mar 5, 2009), recovered by Feb 19, 2013.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +21.8% | — |
| 2025 | +14.8% | +14.88% |
| 2024 | +18.0% | +16.98% |
| 2023 | +2.9% | +2.90% |
| 2022 | +6.7% | +6.71% |
| 2021 | +26.1% | +24.76% |
| 2020 | -4.4% | -4.42% |
| 2019 | +24.4% | +24.36% |
| 2018 | -6.0% | -5.87% |
| 2017 | +12.0% | +11.97% |
| 2016 | +20.7% | +20.67% |
| 2015 | +2.6% | — |
| 2014 | +13.2% | — |
| 2013 | +22.6% | — |
| 2012 | +9.2% | — |
| 2011 | +14.4% | — |
| 2010 | +16.2% | — |
| 2009 | +13.2% | — |
| 2008 | -31.0% | — |
| 2007 | -11.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 64.7% over that stretch · deepest drop along the way 64.7%, back to its old high 42.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 39.6% over that stretch · deepest drop along the way 39.7%, back to its old high 9.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 5% over that stretch · deepest drop along the way 16.4%, back to its old high 4.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.3800 | |
| 2025 | $1.7900 | -10.5% |
| 2024 | $2.0000 | +21.2% |
| 2023 | $1.6500 | +26.0% |
| 2022 | $1.3100 | -20.1% |
| 2021 | $1.6400 | +23.3% |
| 2020 | $1.3300 | +9.0% |
| 2019 | $1.2200 | +13.0% |
| 2018 | $1.0800 | +12.5% |
| 2017 | $0.9600 | +17.1% |
| 2016 | $0.8200 | -5.7% |
| 2015 | $0.8700 | +8.7% |
| 2014 | $0.8000 | +17.6% |
| 2013 | $0.6800 | -5.6% |
| 2012 | $0.7200 | +18.0% |
| 2011 | $0.6100 | +5.2% |
| 2010 | $0.5800 | +3.6% |
| 2009 | $0.5600 | -30.9% |
| 2008 | $0.8100 | -8.0% |
| 2007 | $0.8800 |
Living on FDL: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Jun 30, 2026, the fund held 100 securities; the ten largest made up 48.07% of assets.
| Holding | Weight | |
|---|---|---|
| CHEVRON CORP | 7.43% | |
| VERIZON COMMUNICATIONS INC | 7.17% | |
| PHILIP MORRIS INTERNATIONAL INC | 6.06% | |
| PFIZER INC | 5.91% | |
| PEPSICO INC | 4.84% | |
| ALTRIA GROUP INC | 4.64% | |
| BRISTOL-MYERS SQUIBB COMPANY | 3.43% | |
| UNITED PARCEL SERVICE INC | 3.15% | |
| COMCAST CORP | 3.13% | |
| SOUTHERN COMPANY (THE) | 2.32% | |
| BLACKSTONE INC | 2.31% | |
| MEDTRONIC PLC | 2.28% | |
| US BANCORP | 2.27% | |
| DUKE ENERGY CORP | 2.21% | |
| ACCENTURE PLC | 1.84% |
By country
United States 94.02%Ireland 4.82%Jersey 0.89%By asset type
Stocks 99.73%By sector
Sectors of the companies held, for the 72.2% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $271.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.26%, -1.32%, -1.73%.
How it works
FDL tracks the Morningstar Dividend Leaders Index, which Morningstar, Inc. builds and maintains. The fund normally invests at least 90% of its net assets in the stocks in that index. The starting pool is the Morningstar US Market Index. It covers large, mid-size and small US companies that together make up the top 97% of the investable market by size. Real estate investment trusts (REITs) are excluded.
To qualify, a stock must pay a dividend and must not have shrunk its dividend per share over five years. It also needs a coverage ratio above 1, which means forecast earnings per share are higher than the dividend per share. The stocks that pass are ranked by dividend yield, and the index aims to hold the top 100. Each stock is weighted by the total dollars of dividends it pays, not by company size. No company can go above 10%, and stocks weighted above 5% can't add up to more than 50% of the index.
The index is rebalanced every quarter and fully rebuilt once a year. The fund follows shortly after, and its portfolio turnover was 58%. This approach can pile into a few industries. As of March 31, 2026, the index held 86 stocks and had significant energy holdings.
What it really costs
- FDL charges 0.43% a year, versus an average of 0.33% for the similar funds below (8th of 9, cheapest first).
- Of that, 0.3% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
FDL holds high-yielding US dividend stocks and pays out a yield well above what a broad stock index usually pays, every quarter.
FDL could add a steady stream of dividends to a retirement portfolio. Its trailing 12-month yield was 3.68% as of October 27, 2026, paid quarterly. Its 0.43% expense ratio is above the 0.33% average for similar funds. Its record in downturns is mixed. In the 2008 financial crisis it fell 64.7%, and it lost 31% in calendar 2008. Its deepest drop, 65.9%, took until February 2013 to recover. It fell 39.7% in the 2020 COVID crash but recovered by January 2021. In 2022 it gained 6.71%. Anyone forced to sell shares in a slump like 2008 would have locked in steep losses, and companies can cut their dividends in hard times. 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 who want about 100 US dividend payers, with a 3.68% trailing yield paid quarterly as of October 27, 2026.
- Investors who want heavy weights in big payers like Chevron, Verizon, Philip Morris and Pfizer, and very little technology exposure.
- Investors who value dividend screens: no five-year dividend cuts, forecast earnings that cover the dividend, and no REITs.
Look elsewhere if
- Cost-conscious investors: the 0.43% expense ratio ranks 8th of 9 among similar funds, against 0.06% for SCHD and 0.08% for HDV.
- Investors uneasy with concentration: the top 10 holdings made up 48% of the fund as of June 30, 2026.
- Investors who can't stomach deep losses: it fell 65.9% from 2007 to 2009 and didn't recover until February 2013.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FDL this fund | — | 0.43% | $7.29B | +26.1% | +23.9% |
| HDV iShares Core High Dividend ETF | 45% | 0.08% | $14.90B | +38.0% | +21.7% |
| DHS WisdomTree US High Dividend Fund | 44% | 0.38% | $1.50B | +20.5% | +21.1% |
| XUDV Franklin U.S. Dividend Multiplier Index ETF | 43% | 0.09% | $73.6M | +27.7% | — |
| CDL VictoryShares US Large Cap High Dividend Vo… | 42% | 0.35% | $391.7M | +18.9% | +19.6% |
| SDOG ALPS Sector Dividend Dogs ETF | 38% | 0.36% | $1.44B | +24.8% | +22.4% |
| SCHD Schwab US Dividend Equity ETF | 35% | 0.06% | $112.34B | +38.9% | +19.9% |
| WBIY WBI Power Factor High Dividend ETF | 33% | 0.99% | $59.0M | +20.2% | +20.2% |
Questions investors ask
Does FDL pay monthly dividends?
No. FDL pays dividends quarterly. Over the 12 months to October 27, 2026, it paid $1.93 per share, a trailing yield of 3.68%. The payout depends on the dividends its stocks pay, so it can rise or fall. The prospectus warns that companies are not required to keep paying dividends and could reduce or eliminate them.
What's the difference between FDL and HDV?
The biggest difference is cost. HDV charges 0.08% a year and FDL charges 0.43%. HDV is the most similar fund by holdings, with about 45% overlap. It is also larger, with $14.9 billion in net assets as of July 31, 2026, against FDL's $7.3 billion as of June 30, 2026. FDL weights stocks by the dollars of dividends they pay. Over one year, HDV returned 36.2% (to October 29, 2026) and FDL 26.1% (to October 27, 2026).
Is FDL good for retirement income?
It may suit retirees who want dividend income from US stocks. As of October 27, 2026, its trailing yield was 3.68%, paid quarterly. The trade-offs are a 0.43% expense ratio and big losses in severe crashes. It fell 64.7% in the 2008 financial crisis and took until 2012 to recover. In the 2022 bear market it held up better, finishing the year up 6.71%.
What are FDL's top holdings?
As of June 30, 2026, FDL's largest holdings were Chevron (7.4%), Verizon (7.2%), Philip Morris International (6.1%), Pfizer (5.9%), PepsiCo (4.8%) and Altria (4.6%). The top 10 made up about 48% of the fund's 100 stocks. Among holdings with a sector assigned, consumer staples, utilities and energy were the largest groups. Technology was just 0.6%.
How has FDL performed over the last 10 years?
FDL returned an average of 10.78% a year over the 10 years ended December 31, 2025, according to its prospectus. Over 5 years it returned 12.98% a year, and in 2025 alone it returned 14.88%. Its losing years in that decade were 2018 (−5.87%) and 2020 (−4.42%). Based on share price, its 10-year annualized return was 11.7% through October 27, 2026.