Is First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) a Strong ETF Right Now?

Core Viewpoint - The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) offers investors exposure to mid-cap value stocks with a focus on companies that have a history of increasing dividends [1][5][6]. Fund Overview - SDVY was launched on November 1, 2017, and is managed by First Trust Advisors, accumulating over $8.73 billion in assets, making it one of the larger ETFs in its category [1][5]. - The ETF aims to match the performance of the NASDAQ US Small Mid Cap Rising Dividend Achievers Index, which includes 100 small and mid-cap companies known for raising dividends [5][6]. Cost and Expenses - The ETF has an annual operating expense ratio of 0.59%, which is considered high compared to other funds in the space [7]. - It offers a 12-month trailing dividend yield of 1.96% [7]. Sector Exposure and Holdings - The ETF has a significant allocation in the Industrials sector, comprising approximately 31.3% of the portfolio, followed by Financials and Consumer Discretionary [8]. - The top three holdings include Woodward, Inc. (1.11% of total assets), Comfort Systems USA, Inc., and Northern Trust Corporation, with the top 10 holdings accounting for about 10.12% of total assets [9]. Performance Metrics - As of August 14, 2025, SDVY has increased by approximately 6.47% year-to-date and 12.98% over the past year [11]. - The ETF has traded between $29.52 and $40.33 in the past 52 weeks and has a beta of 1.11 with a standard deviation of 21.35% over the trailing three-year period [11]. Alternatives - Other ETFs in the mid-cap value space include iShares Russell Mid-Cap Value ETF (IWS) and Vanguard Mid-Cap Value ETF (VOE), with IWS having $13.8 billion in assets and VOE $18.65 billion [12][13]. - IWS has a lower expense ratio of 0.23%, while VOE has an expense ratio of 0.07%, making them potentially more attractive options for cost-conscious investors [13].