Friday, August 17, 2012

On the radar: FGD

One can't just grab a hunk of money and invest. Well, actually one can and often folks do. That said, it is not the best approach to investing.

A new ETF (new to me) has registered on my financial radar: First Trust Dow Jones Global Select Dividend Index Fund (FGD).It is at $23.45 (U.S.) today.

FGD is rated a 4 Star Fund (****) by some with above average return mated with average risk. That's is all very well but what has peaked my interest is the dividend: 5.06%. In its category FGD has been in the top percentile for the past three years.

This investment can be volatile. It's biggest three month loss was about 41% back in late 2008, bouncing back with a gain of 54% in early 2009. But it is still down from its pre 2008 crash highs. And of course, it also benefits or suffers from fluctuations in the Canada/U.S. currency exchange rate.

A quick look at its holdings shows financials claim only 13.2% of this fund. With a global fund, this is good. I still have to examine the specific investments but no big flags have appeared as of yet.

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