SDVY: FIRST TRUST SMID CAP RISING DIVIDEND ACHIEVERS ETF
ETF Education Report: FIRST TRUST SMID CAP RISING DIVIDEND ACHIEVERS ETF (SDVY)
What this ETF is trying to do
The SDVY ETF focuses on mid-sized companies that are known for growing their dividends. This means the fund looks for businesses that pay out cash to shareholders and try to increase those payments over time.
What the numbers show
When looking at an ETF, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes both the price change and any cash payments (distributions) you received.
Here is what the data shows for SDVY:
• Year-to-Date (YTD): The price return is approximately 9.06%, while the total return is approximately 9.56%.
• One-Year: The price return was approximately 8.46%, and the total return was approximately 9.60%.
• Three-Year: The price return was approximately 44.90%, and the total return was approximately 52.00%.
• Five-Year: The total return was approximately 59.33%.
To visualize the price change, an investor could look at the estimated price from roughly one year ago, which was $38.53, compared to the current price of $41.79.
Income and distribution explanation
This ETF pays out cash to investors, known as distributions. The distribution yield is approximately 0.99%. This number describes the cash payments relative to the current ETF price. These payments usually happen quarterly, and there were 4 payouts in the last 12 months.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly. It is important to note that a falling share price does not always mean NAV erosion is happening. For this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this fund.
Top Holdings
The following are some of the top companies held by this ETF. Please note that this is a partial list and holdings can change over time:
• National Healthcare Corp (1.29%)
• First Bancorp (1.05%)
• Comfort Systems USA Inc (1.04%)
• Enersys (1.04%)
• Pricesmart Inc (1.04%)
• Interactive Brokers Group Inc Class A (1.03%)
• Watts Water Technologies Inc Class A (1.01%)
• Applied Industrial Technologies Inc (1.00%)
• Williams-Sonoma Inc (0.99%)
• UMB Financial Corp (0.98%)
Pros
• The fund has shown positive total returns over one, three, and five-year periods.
• The erosion-risk measurement is considered "good."
Cons
• The distribution yield (the cash income) is relatively low at approximately 0.99%.
Beginner takeaway
When studying SDVY, remember that total return is the most complete way to see how the fund performed because it includes both price changes and cash distributions. While this fund provides some income, a high distribution yield is not always a guarantee of profit; you must always look at the overall total return and the stability of the share price.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NATIONAL HEALTHCARE CORP | NHC | 1.29% |
| 2 | FIRST BANCORP | FBP | 1.05% |
| 3 | COMFORT SYSTEMS USA INC | FIX | 1.04% |
| 4 | ENERSYS | ENS | 1.04% |
| 5 | PRICESMART INC | PSMT | 1.04% |
| 6 | INTERACTIVE BROKERS GROUP INC CLASS A | IBKR | 1.03% |
| 7 | WATTS WATER TECHNOLOGIES INC CLASS A | WTS | 1.01% |
| 8 | APPLIED INDUSTRIAL TECHNOLOGIES INC | AIT | 1.00% |
| 9 | WILLIAMS-SONOMA INC | WSM | 1.00% |
| 10 | UMB FINANCIAL CORP | UMBF | 0.98% |