IDIV

The U.S. Equity Cumulative Dividends Fund Series 2027 (IDIV) is an exchange-traded fund designed to provide investors with a structured dividend accumulation strategy focused on U.S. equities through the year 2027. The ETF is managed by First Trust Advisors L.P. and trades under the ticker IDIV on NYSE Arca.

Classified as a U.S. equity ETF focused on structured dividend accumulation, IDIV aims to reflect, before fees and expenses, the aggregated performance of a selected portfolio of U.S. dividend-paying stocks.

Unlike traditional ETFs that seek to replicate broad market indices, IDIV follows a defined-horizon structure extending through 2027, focused on the accumulation of dividend income over that period.

The portfolio consists of a selected group of U.S.-listed companies with a consistent dividend payment record and financial characteristics aligned with the fund’s construction methodology.

Diversification and sector exposure

IDIV provides exposure to the U.S. equity market with an emphasis on dividend-oriented companies, including sectors such as:

• Financials.

• Utilities.

• Consumer staples.

• Energy.

• Health care.

• Industrials.

Structure and costs

Shares of IDIV are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries an expense ratio aligned with cumulative dividend return strategies, reflecting the complexity of a thematic investment with a defined horizon. IDIV does not charge a separate performance fee. 

As a defined-horizon structure focused on dividend accumulation, the ETF does not make periodic income distributions. Instead, dividends received are retained within the fund until its scheduled maturity in 2027.

History and evolution of the ETF

U.S. Equity Cumulative Dividends Fund Series 2027 was launched in 2022 in a market environment marked by increased interest in defined-horizon investment structures that combine equity exposure with dividend-based return components.

Over time, the ETF has formed part of allocation strategies incorporating structured equity exposure with internally accumulated dividend income.

Between 2022 and 2024, the ETF reflected market dynamics characterized by equity volatility cycles, shifts in monetary policy, and varying sector performance levels, while maintaining liquidity consistent with its defined-horizon structure.