The First Trust Rising Dividend Achievers ETF (RDVY) is an exchange-traded fund designed to track the performance of U.S. companies with a history of growing dividends and strong financial fundamentals. The ETF is managed by First Trust Advisors and trades under the ticker RDVY on the Nasdaq.

Classified as an equity ETF, the fund invests in U.S. companies that demonstrate the potential to increase their dividend payments over time. Holdings are selected based on factors related to financial strength, profitability, and dividend growth, seeking to identify businesses capable of sustaining and expanding shareholder distributions.

The ETF follows a passive management strategy and seeks to replicate the performance of the NASDAQ US Rising Dividend Achievers Index, which consists of U.S. companies selected according to dividend growth characteristics and fundamental financial metrics.

Diversification and sector exposure

RDVY provides exposure primarily associated with:

• U.S. companies with growing dividends.

• Financials.

• Industrials.

• Information technology.

• Healthcare.

• Consumer discretionary.

• Energy.

• Large- and mid-cap companies.

The portfolio includes companies from a variety of sectors across the U.S. economy that have demonstrated the ability to increase dividends over time, combining income generation with the potential for capital appreciation.

The ETF's performance generally reflects both the broader U.S. equity market and the results of companies with consistent dividend growth and strong financial fundamentals.

Structure and costs

RDVY shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings are generally distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The First Trust Rising Dividend Achievers ETF was launched in 2014 to provide investors with exposure to U.S. companies that have demonstrated a history of dividend growth supported by strong financial fundamentals.

Since inception, the fund has tracked the NASDAQ US Rising Dividend Achievers Index, reflecting the performance of companies selected for their ability to increase shareholder distributions over time.

Over time, the ETF has been influenced by corporate earnings growth, changes in dividend policies, economic cycles, and developments across the U.S. equity market.

Additional Information

First Trust Rising Dividend Achievers ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $25.60 billion.

Over the past 12 months, First Trust Rising Dividend Achievers ETF recorded a return of 26.57%, with its price trading between $65.02 and $83.88 during the same period.

The ETF is traded under the ticker RDVY.