FVD: DGRO And SCHD Are Better Dividend Bets Barring A Deep Recession

Summary First Trust Value Line Dividend Index Fund ETF is a well-diversified dividend-oriented ETF with $7.9 billion in net assets and a 2.36% estimated dividend yield, which is hampered by a high 0.62% expense ratio. As a low-risk ETF, most investors understand that maximizing total returns isn't the objective with FVD. However, its appeal as a defensive product requires context. Historically, it has not outperformed peers like DGRO and SCHD in moderate, somewhat short-lived drawdowns. Moreover, recovery times were relatively slow. However, the strategy's focus on stable quality may help avoid the most disastrous of recessions. I offer FVD's fast recovery following the Great Financial Crisis as evidence. Still, FVD's appeal is for exceptional circumstances only, and since I don't anticipate that in the near or moderate term, I prefer DGRO, SCHD, and many other funds listed at the end of this article. Therefore, it's a hold. PM Images/DigitalVision via Getty Images Investment Thesis I last covered the First Trust Value Line Dividend Index Fund ETF ( FVD ) on January 6, 2026, when I rated it a "hold" and explained why I believed the iShares Core Dividend Growth ETF ( This article was written by The Sunday Investor 7.46K Followers Follow The Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10. The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing! Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD, SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. FVD is a low-risk dividend-themed ETF, but its risk-adjusted returns and performance during short, somewhat deep drawdowns, isn't better than peers DGRO and SCHD. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.