FDD offers a concentrated take on the European high-dividend space. The underlying index picks 30 stocks from the STOXX Europe 600—a broad total market Europe equity index. Selected names should have at least five years of steady dividend growth and a dividend payout ratio of 60% or less. The resulting 30 names in the basket are then weighted by dividends paid in the last twelve months, with security weights capped at 15%. This methodology can result in some surprising under- and overweights, and skews away from a market-like portfolio. However, FDD offers a unique approach targeted toward dividend-hungry investors. The index is reconstituted and rebalanced annually.