Richmond Investment Services Trims $6 Million from First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) Position

Core Insights - Richmond Investment Services, LLC has significantly reduced its holding in the First Trust SMID Cap Rising Dividend Achievers ETF (SDVY), trimming its position by $6.31 million as of November 12, 2025, while still maintaining it as their tenth-largest position [1][2]. Group 1: Holdings and Financial Metrics - Richmond sold 206,264 shares of SDVY, reducing its stake to 354,450 shares valued at $13.5 million as of September 30, 2025 [2]. - The sale decreased the position's share of fund AUM from 4.2% to 2.5% [2]. - As of December 9, 2025, SDVY shares were priced at $38.41, reflecting a 1% decline over the past year, underperforming the S&P 500 by 14 percentage points [3]. Group 2: ETF Overview - The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) has an AUM of $9.25 billion and a dividend yield of 1.34% [4]. - The ETF aims to provide targeted exposure to small- and mid-cap U.S. equities with a strong track record of dividend increases, balancing income generation with potential capital appreciation [5][7]. Group 3: Performance and Comparison - Since its inception in 2017, SDVY has underperformed the S&P 500's total returns by 121% to 203%, largely due to the latter's significant allocation to high-performing stocks [10]. - SDVY's P/E ratio stands at 16, making it more attractive from a value perspective compared to the S&P 500's ratio of approximately 29 [11]. - The ETF's expense ratio is 0.59%, which is considered high relative to standard tracking indexes [11]. Group 4: Investment Strategy - The ETF employs a rules-based approach, focusing on dividend growth companies, with at least 90% of assets invested in index constituents [5][7]. - SDVY's diversified holdings and disciplined selection criteria position it as a strategic investment tool for investors seeking quality and growth within the SMID-cap segment [8].