First Trust Rising Dividend Achievers ETF

RDVY

Market cap $16.9B

The First Trust Rising Dividend Achievers ETF (RDVY) was launched on January 7, 2014, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

Making its debut on 01/07/2014, smart beta exchange traded fund First Trust Rising Dividend Achievers ETF (RDVY) provides investors broad exposure to the Style Box - Large Cap Value category of the market.

I rate RDVY a hold: its dividend growth strategy fails to outperform the market and is more volatile than broad large-cap ETFs like VOO. RDVY's portfolio is concentrated, has high turnover (57%), and a high expense ratio (0.48%), and delivers lower risk-adjusted returns than the market. Despite a reputation for resilience, RDVY's dividend yield is only marginally higher than VOO, and its risk metrics are worse, making it a less attractive option.

Some investors are worried that the stock market is set up for a tech-driven decline.

Fed rate-cut signals and economic uncertainty boost investor interest in dividend-focused ETFs like VIG and VYM for steady income.

The First Trust Rising Dividend Achievers ETF (RDVY) was launched on January 7, 2014, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

The First Trust Rising Dividend Achievers ETF (RDVY) made its debut on 01/07/2014, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.

When it comes to passive income, many investors often flock to the stocks with the highest dividend yields. But the companies that pay the highest dividends might also have the least room to grow because there's nowhere left to invest their excess cash.

RDVY offers a focused portfolio of high-quality, dividend-growing companies, with strong selection criteria and quarterly rebalancing for optimal exposure. While the starting yield is low at 1.6%, RDVY delivers impressive dividend growth, compounding income for long-term, tax-efficient investors. RDVY has outperformed popular dividend ETF SCHD in total return, mainly due to greater technology exposure, but lags broad market ETFs like SPY and QQQ.

If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the First Trust Rising Dividend Achievers ETF (RDVY), a passively managed exchange traded fund launched on 01/07/2014.