RDVY: FIRST TRUST RISING DIVIDEND ACHIEVERS ETF
What this ETF is trying to do
The FIRST TRUST RISING DIVIDEND ACHIEVERS ETF (RDVY) is an exchange-traded fund designed to focus on companies that are growing their dividends. It holds a total of 73 different investments. This ETF is not considered leveraged or inverse, meaning it does not use borrowed money to multiply returns or bet against the market.
What the numbers show
The data shows that RDVY has experienced significant growth in its share price over several years.
• Year-to-Date (YTD): The price return is approximately 13.53%. When including distributions, the YTD total return is approximately 14.27%.
• One-Year: The one-year price return is approximately 17.33%. The one-year total return is approximately 18.43%.
• Three-Year: The three-year price return is approximately 74.11%. The three-year total return is approximately 81.58%.
• Five-Year: The five-year total return is approximately 76.05%.
To understand the price movement, we can look at an estimated price from roughly one year ago, which was approximately $67.22. The current price is $78.87.
Income and distribution explanation
RDVY provides cash to investors through distributions. The distribution yield is approximately 0.86%. This number describes the cash paid out relative to the current ETF price. The fund usually pays these distributions on a quarterly basis, having made 4 payments over the last 12 months.
It is important to remember that a distribution yield is not the same as total return. While distributions provide cash income, they are only one part of an investor's overall experience.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, looking at price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Top Holdings
The following are the top holdings in the portfolio (note that this is a partial list):
• Applied Materials Inc (3.64%)
• Lam Research Corp (3.30%)
• KLA Corp (2.99%)
• Bank of New York Mellon Corp (2.42%)
• GE Vernova Inc (2.38%)
• The Travelers Companies Inc (2.29%)
• Ross Stores Inc (2.28%)
• Allstate Corp (2.15%)
• Bank of America Corp (2.14%)
• Alphabet Inc Class A (2.06%)
Please note that holdings can change over time.
Pros
• Strong historical total returns over one, three, and five-year periods.
• No detected price erosion based on the current erosion score.
Cons
• The distribution yield is relatively low at approximately 0.86%.
Beginner takeaway
RDVY focuses on companies with rising dividends. While it provides regular quarterly income, its primary strength in the recent past has been shown through its share-price growth and total returns. Always remember that a high yield is not the same as total profit, and price changes are separate from the cash distributions you receive.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | APPLIED MATERIALS INC | AMAT | 3.64% |
| 2 | LAM RESEARCH CORP | LRCX | 3.30% |
| 3 | KLA CORP | KLAC | 2.99% |
| 4 | BANK OF NEW YORK MELLON CORP | BNY | 2.42% |
| 5 | GE VERNOVA INC | GEV | 2.38% |
| 6 | THE TRAVELERS COMPANIES INC | TRV | 2.29% |
| 7 | ROSS STORES INC | ROST | 2.28% |
| 8 | ALLSTATE CORP | ALL | 2.15% |
| 9 | BANK OF AMERICA CORP | BAC | 2.14% |
| 10 | ALPHABET INC CLASS A | GOOGL | 2.06% |