Core Insights - The First Trust Rising Dividend Achievers ETF (RDVY) targets U.S. common stocks that demonstrate consistent dividend growth and maintain balance-sheet discipline [1] Group 1: Eligibility Criteria - Stocks must be among the top ~750 by market capitalization and have a 3-month average daily trading volume (ADVT) of at least USD 5 million [1] - Eligible stocks must pay regular cash dividends and show both 3-year and 5-year dividend-per-share growth compared to the prior 12-month period [1] - The dividend payout ratio must be 65% or lower, and cash to debt ratio must exceed 50% [1] Group 2: Selection and Ranking - Candidates are ranked based on dividend growth and payout sustainability, with a selection of up to 50 names [1] - At least 33 of the selected stocks must be large-cap, and a maximum of 15 can come from any single ICB industry to reduce concentration risk [1] - Constituents of the index are equal-weighted [1] Group 3: Rebalancing and Reconstitution - The index undergoes reconstitution and rebalancing on a quarterly basis, specifically in March, June, September, and December [1] - Buffers are implemented to limit unnecessary turnover and corporate-action drift between reviews [1]