The Value Line Dividend Index
METHODOLOGY INFORMATION UPDATED AS OF 7/21/2021
Investment Objective/Strategy - The First Trust Value Line® Dividend Index Fund is an exchange-traded index fund. The objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of the Value Line® Dividend Index.
There can be no assurance that the Fund's investment objectives will be achieved.
- The index begins with the universe of stocks that Value Line® gives a SafetyTM Ranking of #1 or #2 using the Value Line® SafetyTM Ranking System. All registered investment companies, limited partnerships and foreign securities not listed in the U.S. are removed from this universe.
- From those stocks, Value Line® selects those companies with a higher than average dividend yield, as compared to the indicated dividend yield of the Standard & Poor's 500 Composite Stock Price Index.
- Value Line® then eliminates those companies with an equity market capitalization of less than $1 billion.
- The index seeks to be equally weighted in each of the securities in the index. The index is rebalanced on the application of the above model on a monthly basis.
- The index methodology is periodically reviewed.
The Value Line Safety™ Rank
The Value Line Safety™ Rank measures the total risk of a stock relative to the approximately 1,700 other stocks in the Value Line Investment Survey Universe. It takes into account a stock's Price Stability rank and the Financial Strength rating of a company. Safety ranks are given on a scale from 1 (Safest) to 5 (Riskiest) as follows. Rank 1 (Highest): These stocks, as a group, are the most stable, and least risky investments relative to the Value Line universe Rank 2 (Above Average): These stocks, as a group, are less risky than most. Rank 3 (Average): These stocks, as a group, have about average risk. Rank 4 (Below Average): These stocks, as a group, are riskier than most. Rank 5 (Lowest): These stocks, as a group, are the riskiest.
The Value Line Dividend Index is an alphabetical record of all Value Line holdings. Updated monthly, it includes ticker, company name, and % weight of each holding.
See the index as of 04/29/2022 below: