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Yahoo
10-07-2025
- Business
- Yahoo
Is First Trust Rising Dividend Achievers ETF (RDVY) a Strong ETF Right Now?
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. Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry. Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency. There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies. This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics. Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results. Because the fund has amassed over $15.23 billion, this makes it one of the larger ETFs in the Style Box - Large Cap Value. RDVY is managed by First Trust Advisors. RDVY, before fees and expenses, seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index. The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends. For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same. Operating expenses on an annual basis are 0.48% for this ETF, which makes it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.43%. Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. RDVY's heaviest allocation is in the Financials sector, which is about 38.6% of the portfolio. Its Information Technology and Consumer Discretionary round out the top three. Taking into account individual holdings, Ebay Inc. (EBAY) accounts for about 2.52% of the fund's total assets, followed by Meta Platforms Inc. (class A) (META) and Booking Holdings Inc. (BKNG). The top 10 holdings account for about 23.33% of total assets under management. The ETF return is roughly 8.19% and it's up approximately 18.06% so far this year and in the past one year (as of 07/10/2025), respectively. RDVY has traded between $51.60 and $64.37 during this last 52-week period. The ETF has a beta of 1.07 and standard deviation of 19.07% for the trailing three-year period, making it a medium risk choice in the space. With about 77 holdings, it effectively diversifies company-specific risk . First Trust Rising Dividend Achievers ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well. Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $71.1 billion in assets, Vanguard Value ETF has $139.67 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-05-2025
- Business
- Yahoo
Should First Trust Rising Dividend Achievers ETF (RDVY) Be on Your Investing Radar?
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. The fund is sponsored by First Trust Advisors. It has amassed assets over $14.01 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market. Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts. While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets. Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same. Annual operating expenses for this ETF are 0.48%, putting it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.69%. ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation to the Financials sector--about 38.60% of the portfolio. Information Technology and Consumer Discretionary round out the top three. Looking at individual holdings, Unum Group (UNM) accounts for about 2.49% of total assets, followed by Booking Holdings Inc. (BKNG) and Visa Inc. (class A) (V). The top 10 holdings account for about 22.83% of total assets under management. RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index before fees and expenses. The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends. The ETF return is roughly 0.92% so far this year and it's up approximately 9.72% in the last one year (as of 05/27/2025). In the past 52-week period, it has traded between $51.60 and $64.37. The ETF has a beta of 1.08 and standard deviation of 19.76% for the trailing three-year period, making it a medium risk choice in the space. With about 77 holdings, it effectively diversifies company-specific risk. First Trust Rising Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RDVY is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well. The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $67.43 billion in assets, Vanguard Value ETF has $131.73 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports Visa Inc. (V) : Free Stock Analysis Report Unum Group (UNM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports Booking Holdings Inc. (BKNG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
