Is First Trust Dow 30 Equal Weight ETF (EDOW) a Strong ETF Right Now?

Core Viewpoint - The First Trust Dow 30 Equal Weight ETF (EDOW) is designed to provide broad exposure to the large-cap blend market while utilizing a smart beta strategy that focuses on equal weighting rather than market capitalization [1][5]. Fund Overview - EDOW was launched on August 8, 2017, and is managed by First Trust Advisors [1][5]. - The fund has accumulated over $217.92 million in assets, categorizing it as an average-sized ETF in its segment [5]. - It aims to match the performance of the Dow Jones Industrial Average Equal Weight Index, which is a price-neutral version of the price-weighted DJIA [5]. Cost Structure - The annual operating expenses for EDOW are 0.50%, which is competitive within its peer group [6]. - The ETF has a 12-month trailing dividend yield of 1.41% [6]. Sector Exposure and Holdings - The ETF has a significant allocation in the Information Technology sector, comprising approximately 20.7% of the portfolio [7]. - The top three sectors also include Financials and Consumer Discretionary [7]. - Nike, Inc. (class B) (NKE) is the largest holding at about 3.86% of total assets, followed by The Goldman Sachs Group, Inc. (GS) and Nvidia Corporation (NVDA) [8]. - The top 10 holdings represent around 35.29% of total assets under management [8]. Performance Metrics - As of August 12, 2025, EDOW has increased by approximately 6.75% year-to-date and 16.88% over the past year [10]. - The fund has traded between $32.19 and $39.21 in the last 52 weeks [10]. - EDOW has a beta of 0.90 and a standard deviation of 14.37% over the trailing three-year period, indicating a more concentrated exposure compared to its peers with about 31 holdings [10]. Alternatives - EDOW is positioned as a strong option for investors looking to outperform the large-cap blend segment, with alternatives such as SPDR S&P 500 ETF (SPY) and Vanguard S&P 500 ETF (VOO) also available [11]. - SPY has $651.18 billion in assets and an expense ratio of 0.09%, while VOO has $715.48 billion with a lower expense ratio of 0.03% [11].