First Trust DJ Global Select Dividend (FGD) Covered Calls
The First Trust Dow Jones Global Select Dividend Index Fund (FGD) is a passively managed ETF that tracks the Dow Jones Global Select Dividend Index. It provides exposure to 100 high-dividend-yielding stocks from developed markets worldwide, utilizing a yield-weighted methodology to capture income.
You can sell covered calls on First Trust DJ Global Select Dividend to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for FGD (prices last updated Fri 4:16 PM ET):
| First Trust DJ Global Select Dividend (FGD) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 30.96 | -0.81 | 30.44 | 33.21 | 398K | - | 0.8 |
| Covered Calls For First Trust DJ Global Select Dividend (FGD) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 31 | 0.00 | 33.21 | -6.7% | -84.3% | |
| May 15 | 31 | 0.00 | 33.21 | -6.7% | -42.9% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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The First Trust Dow Jones Global Select Dividend Index Fund (FGD) is designed for investors seeking international income through a diversified basket of developed-market equities. By screening for consistent dividend payers and weighting by yield, the fund captures high-income opportunities in sectors like financials, utilities, and energy across various developed regions. Unlike many broad-market indices, FGD’s methodology is explicitly built to harvest yield, making it a popular choice for yield-focused satellite allocations.
Important Note on Options: FGD is functionally non-optionable. While exchange-listed options may technically appear in data feeds, the market is characterized by zero-to-negligible volume and extreme bid-ask spreads. Any attempt to use this ticker for options strategies will result in immediate and significant slippage. This fund is intended for long-term equity income generation, not derivative-based strategies.
Competitive Landscape
For investors seeking liquid, optionable alternatives to express a view on international dividend equities, the following funds offer the necessary depth for strategy execution:
- iShares International Select Dividend ETF (IDV): A significantly more liquid and widely traded optionable benchmark for developed market dividends.
- Vanguard High Dividend Yield ETF (VYM): While U.S.-focused, it is the liquidity king for dividend-income strategies and is frequently paired with international dividend ETFs to balance geographic risk.
- Global X MSCI SuperDividend EAFE ETF (EFAS): An international dividend alternative that offers better liquidity characteristics than FGD for those needing to manage positions through derivatives.
Strategic Outlook
FGD’s outlook is driven by global interest rate policies and the health of the banking and utility sectors in developed nations. Because it focuses on the highest-yielding stocks, it can tilt toward value-oriented sectors that may underperform during growth-led market rallies. It is best used as a long-term "set-and-forget" dividend yield enhancer for a portfolio, rather than a tactical tool for short-term trading.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | SPY covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | QQQ covered calls | 2. | CMPX covered calls | |
| 3. | NVDA covered calls | 8. | HYG covered calls | 3. | ONDS covered calls | |
| 4. | KWEB covered calls | 9. | EWZ covered calls | 4. | AAOI covered calls | |
| 5. | GLD covered calls | 10. | XLE covered calls | 5. | IBM covered calls | |
Want more examples? FG Covered Calls | FGM Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
