The U.S. economy has lately been showing signs of weakness. There are concerns about the health of the job market and the overall U.S. economy. Due tothe Trump administration’s wavering trade policies, which add uncertainty in the U.S. economy, investors seeking stable income are looking at dividend stocks and funds to boost their portfolios.Federal Reserve Governor Michelle Bowman recently indicated that she is considering three interest rate cuts this year due to the economic slowdown. Bowman indicated th ...

Core Viewpoint - The First Trust Rising Dividend Achievers ETF (RDVY) is a passively managed ETF that aims to provide broad exposure to the Large Cap Value segment of the US equity market, with significant assets under management and a focus on dividend-paying companies [1][7]. Group 1: ETF Overview - RDVY was launched on January 7, 2014, and has accumulated over $15.46 billion in assets, making it one of the larger ETFs in its category [1]. - The ETF has an annual operating expense ratio of 0.48% and a 12-month trailing dividend yield of 1.44% [4]. - It seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index, which includes companies with a history of paying dividends [7]. Group 2: Market Characteristics - Large cap companies, typically with market capitalizations above $10 billion, are considered more stable with predictable cash flows and lower volatility compared to mid and small cap companies [2]. - Value stocks, which RDVY focuses on, generally have lower price-to-earnings and price-to-book ratios, and while they have lower sales and earnings growth rates, they have historically outperformed growth stocks in most markets [3]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 36.5% of the portfolio, followed by Information Technology and Industrials [5]. - Meta Platforms Inc. (META) accounts for approximately 2.3% of total assets, with the top 10 holdings representing about 22.2% of total assets under management [6]. Group 4: Performance Metrics - As of August 1, 2025, RDVY has gained approximately 7.84% year-to-date and 9.92% over the past year, with a trading range between $51.60 and $64.37 in the past 52 weeks [7]. - The ETF has a beta of 1.07 and a standard deviation of 18.88% over the trailing three-year period, indicating a medium risk profile [8]. Group 5: Alternatives and Market Position - RDVY carries a Zacks ETF Rank of 3 (Hold), suggesting it is a sufficient option for investors seeking exposure to the Large Cap Value area [9]. - Alternative ETFs in this space include the Schwab U.S. Dividend Equity ETF (SCHD) with $69.21 billion in assets and an expense ratio of 0.06%, and the Vanguard Value ETF (VTV) with $139.05 billion in assets and an expense ratio of 0.04% [10]. Group 6: Investor Appeal - Passively managed ETFs like RDVY are increasingly favored by retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11].

Core Viewpoint - The First Trust Rising Dividend Achievers ETF (RDVY) is a smart beta ETF that aims to provide broad exposure to the large-cap value segment of the market, focusing on companies with a history of paying dividends [1][5]. Fund Overview - RDVY was launched on January 7, 2014, and has accumulated over $15.23 billion in assets, making it one of the larger ETFs in its category [1][5]. - The fund is managed by First Trust Advisors and seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index [5]. Cost and Performance - The ETF has an annual operating expense ratio of 0.48%, which is competitive within its peer group [6]. - It offers a 12-month trailing dividend yield of 1.43% [6]. - The ETF has returned approximately 8.19% and is up about 18.06% year-to-date as of July 10, 2025 [9]. Sector Exposure and Holdings - RDVY's largest sector allocation is in Financials, comprising approximately 38.6% of the portfolio, followed by Information Technology and Consumer Discretionary [7]. - Ebay Inc. (EBAY) represents about 2.52% of the fund's total assets, with the top 10 holdings accounting for around 23.33% of total assets under management [8]. Risk Profile - The ETF has a beta of 1.07 and a standard deviation of 19.07% over the trailing three-year period, indicating a medium risk profile [9]. - With approximately 77 holdings, RDVY effectively diversifies company-specific risk [9]. Alternatives - Other ETFs in the large-cap value space include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), which have significantly larger asset bases and lower expense ratios [11].