Another exchange-traded fund (ETF) joined the arena of dividend-based ETFs today when First Trust Advisors launched the First Trust Dow Jones Global Select Dividend Index Fund (FGD) on the American Stock Exchange. FGD carries an expense ratio of 0.60%.

The underlying index includes 100 stocks from more than 11 developed markets; the components are selected and weighted based on dividend yield. The largest countries are Australia, with a 28.41% weighting; Great Britain, with a 22.14% weighting; and the United States, with a 20.08% weighting. Financials is the largest sector at 34.84% of the index, followed by Industrials at 15.99% and Utilities at 15.22%. The index has a dividend yield of 4.94%; its PE ratio is 14.36.

The Dow Jones Global Select Dividend Index was up 15.21% year-to-date as of the end of the third quarter and had a five-year annualized return of 25.17%. By comparison, the Dow Jones World Developed Markets Index, which represents its selection universe, was up 11.96% for the first nine months of 2007 and had a five-year annualized return of 20.24%.

Barclays Global Investors offers two ETFs based on the Dow Jones Select Dividend indexes that together offer somewhat similar exposure using the same methodology. The iShares Dow Jones Select Dividend Index Fund (NYSE: DVY) holds only domestic stocks, while the iShares Dow Jones EPAC Select Dividend Index Fund (NYSE: IDV) holds stocks from Europe and the Asia Pacific region. The funds have expense ratios of 0.40% and 0.50%, respectively.