First Trust Rising Dividend Achievers ETF (RDVY)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
First Trust Rising Dividend Achievers ETF (RDVY) trades at $80.50 with AI Score 47/100 (Grade C). First Trust Rising Dividend Achievers ETF (RDVY) aims to replicate the Nasdaq US Rising Dividend Achievers Index, focusing on companies with a history of increasing dividends. Market cap: $22.46B, Sector: Financial services.
Price live · AI analysis from Mar 18, 2026Analyst Coverage for RDVY: RDVY does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates RDVY against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
RDVY: the 1 perspectives are evenly split.
How is this calculated? →First Trust Rising Dividend Achievers ETF (RDVY) Financial Services Profile
First Trust Rising Dividend Achievers ETF (RDVY) provides investors exposure to U.S. companies with a track record of raising dividends, utilizing a selection process that emphasizes earnings growth, cash levels relative to debt, and dividend payout ratios, operating within the competitive asset management sector.
What Is the Investment Thesis for RDVY?
RDVY presents an investment opportunity centered on dividend growth stocks within the U.S. equity market. The fund's strategy of tracking the Nasdaq US Rising Dividend Achievers Index offers exposure to companies with a proven track record of increasing dividends. With a market cap of $22.46B, RDVY provides diversification across various sectors. A key value driver is the fund's focus on companies exhibiting strong financial health and the potential for continued dividend growth, based on metrics like earnings growth and cash flow. However, the fund's beta of 1.04 indicates market volatility. The absence of a stated dividend yield for the ETF itself may deter some income-focused investors. The fund's performance is tied to the continued financial strength and dividend policies of its constituent companies.
Based on FMP financials and quantitative analysis
RDVY Key Highlights
- RDVY's investment strategy focuses on companies with a history of raising dividends, providing a potential hedge against inflation.
- The fund tracks the Nasdaq US Rising Dividend Achievers Index, offering a rules-based approach to dividend growth investing.
- RDVY's expense ratio is designed to be competitive within the dividend-focused ETF landscape.
- The fund's holdings are diversified across various sectors, reducing concentration risk.
- RDVY's market capitalization of $22.46B indicates substantial investor interest and liquidity.
Who Are RDVY's Competitors?
RDVY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AVUV Avantis U.S. Small Cap Value ETF | $123.92 | +0.33% | $27.16B | 47 |
| DFUS Dimensional - US Equity Market ETF | $82.36 | +0.92% | $21.05B | 44 |
| DGRW WisdomTree U.S. Quality Dividend Growth Fund | $96.24 | +0.40% | $17.00B | 47 |
| EWJ iShares MSCI Japan ETF | $95.25 | +2.27% | $22.69B | 47 |
| FNDF Schwab Fundamental International Large Company Index ETF | $53.53 | +1.50% | $24.97B | 47 |
| NXDT NexPoint Diversified Real Estate Trust | $5.53 | +3.08% | $285.77M | 73 |
| GENB Generate Biomedicines, Inc. | $17.03 | -2.18% | $2.18B | 72 |
| SII Sprott Inc. | $118.11 | +2.72% | $3.05B | 71 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are RDVY's Key Strengths?
- Focus on companies with a history of raising dividends.
- Rules-based index methodology.
- Diversified portfolio across sectors.
- Established brand and reputation of First Trust.
What Are RDVY's Weaknesses?
- Dependence on the performance of dividend-paying companies.
- Potential for underperformance in growth-oriented markets.
- Expense ratio may be higher than some broad market ETFs.
- Vulnerability to changes in dividend policies of constituent companies.
What Could Drive RDVY Stock Higher?
- Potential changes in corporate tax policy could impact dividend payouts.
- Continued demand for dividend income from retirees and income-seeking investors.
- Increasing adoption of ESG investing could drive demand for dividend ETFs with ESG screens.
What Are the Key Risks for RDVY?
- Rising interest rates could reduce the attractiveness of dividend stocks.
- Economic slowdown could lead to dividend cuts by companies.
- Increased competition from other dividend ETFs.
- Changes in tax laws could impact the tax efficiency of dividend income.
What Are the Growth Opportunities for RDVY?
- Expansion into Global Markets: RDVY could extend its investment strategy to include international dividend achievers, tapping into the growing demand for dividend income in emerging markets. This expansion could involve creating new ETFs or modifying the existing index to include foreign companies with a history of raising dividends. The global dividend market represents a significant opportunity, with dividend payments worldwide totaling trillions of dollars annually.
- Thematic Dividend Investing: RDVY could launch thematic dividend ETFs focused on specific sectors or industries, such as technology or healthcare. This would cater to investors seeking dividend income from specific areas of the economy. Thematic investing is a growing trend, with investors increasingly interested in aligning their investments with specific themes or trends.
- ESG Integration: RDVY could integrate environmental, social, and governance (ESG) factors into its index methodology, attracting socially responsible investors. This could involve screening companies based on ESG criteria or tilting the index towards companies with strong ESG performance. ESG investing is becoming increasingly mainstream, with investors demanding greater transparency and accountability from companies.
- Enhanced Indexing Strategies: RDVY could explore enhanced indexing strategies that aim to outperform the Nasdaq US Rising Dividend Achievers Index. This could involve using quantitative models to identify undervalued dividend stocks or employing tactical asset allocation strategies to adjust the portfolio's exposure to different sectors or regions. Enhanced indexing strategies seek to provide investors with higher returns than traditional passive investing.
- Partnerships with Financial Advisors: RDVY could partner with financial advisors to promote its ETFs to retail investors. This could involve providing advisors with educational materials, marketing support, and access to RDVY's investment team. Financial advisors play a key role in helping investors allocate their assets and choose appropriate investment products.
What Opportunities Does RDVY Have?
- Expansion into international dividend markets.
- Launch of thematic dividend ETFs.
- Integration of ESG factors into the index methodology.
- Partnerships with financial advisors to promote the ETF.
What Threats Does RDVY Face?
- Rising interest rates could reduce the attractiveness of dividend stocks.
- Economic downturn could lead to dividend cuts.
- Increased competition from other dividend ETFs.
- Changes in tax laws could impact dividend income.
What Are RDVY's Competitive Advantages?
- Established brand and reputation of First Trust Advisors.
- Proprietary index methodology for selecting dividend achievers.
- Scale and liquidity as a large dividend-focused ETF.
What Does RDVY Do?
First Trust Rising Dividend Achievers ETF (RDVY) is an exchange-traded fund (ETF) managed by First Trust Advisors L.P. The fund is designed to track the performance of the Nasdaq US Rising Dividend Achievers Index. This index comprises companies with a demonstrated history of increasing their dividend payments, signaling financial stability and a commitment to returning value to shareholders. RDVY invests at least 90% of its net assets in the securities that make up the index. The index methodology focuses on selecting companies that not only have a history of raising dividends but also exhibit characteristics suggesting they can continue to do so. This involves analyzing a company’s earnings growth, cash flow relative to debt, and the proportion of earnings paid out as dividends. By focusing on these factors, RDVY seeks to provide investors with a portfolio of companies that are both financially sound and committed to increasing shareholder value through dividends. The fund operates within the asset management industry, offering a targeted investment strategy focused on dividend growth.
What Products and Services Does RDVY Offer?
- Tracks the Nasdaq US Rising Dividend Achievers Index.
- Invests primarily in U.S. companies with a history of raising dividends.
- Selects companies based on earnings growth, cash flow, and payout ratios.
- Provides investors with exposure to dividend growth stocks.
- Offers a diversified portfolio of dividend-paying companies.
- Seeks to provide investment results that correspond to the price and yield of the index.
How Does RDVY Make Money?
- Generates revenue through management fees charged on assets under management (AUM).
- AUM growth is driven by investment performance and net inflows.
- Expenses include operational costs, index licensing fees, and marketing expenses.
What Industry Does RDVY Operate In?
RDVY operates within the asset management industry, specifically targeting the dividend-focused ETF segment. The industry is characterized by increasing demand for passive investment strategies and dividend-paying stocks, driven by investors seeking income and stability. The competitive landscape includes other dividend ETFs such as DGRW and FNDF, each with its own index methodology and investment focus. The growth of the dividend ETF market is influenced by factors such as interest rates, economic growth, and investor sentiment towards dividend-paying companies.
Who Are RDVY's Key Customers?
- Retail investors seeking dividend income.
- Institutional investors looking for dividend growth exposure.
- Financial advisors using ETFs in client portfolios.
First Trust Rising Dividend Achievers ETF (RDVY) Valuation Context
Relative to its peer group, RDVY's quantitative score of 47/100 is roughly in line with the peer average of 46/100.
RDVY Financials
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the ETF's strategy and management.
- Community sentiment has turned positive, with discussions highlighting the ETF's focus on rising dividend stocks as a hedge against inflation.
- Market perception is improving as investors seek stable income streams, especially in uncertain economic conditions.
- The ETF's diversified approach to dividend achievers is attracting attention from income-focused investors.
Bear Case
- Concerns about rising interest rates may dampen the attractiveness of dividend-focused investments.
- Recent bearish sentiments in the community indicate worries about potential economic slowdowns affecting dividend sustainability.
- Market volatility has led some to question the long-term growth potential of dividend stocks compared to growth stocks.
- Insider selling activity has raised flags among some investors, suggesting potential lack of confidence from management.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
RDVY Latest News
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Net Asset Value(s)
Yahoo! Finance: RDVY News · May 12, 2026
RDVY Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for RDVY.
Price Targets
Wall Street price target analysis for RDVY.
RDVY MoonshotScore
What does this score mean?
The MoonshotScore rates RDVY's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest First Trust Rising Dividend Achievers ETF Analysis
Leadership: James M. Dykas
Unknown
Information on James M. Dykas's background is not available in the provided context. Further research would be needed to provide details on his career history, education, and previous roles.
Track Record: Information on James M. Dykas's track record is not available in the provided context. Further research would be needed to provide details on key achievements, strategic decisions, and company milestones under his leadership.
First Trust Rising Dividend Achievers ETF Financial Services Stock: Key Questions Answered
What does First Trust Rising Dividend Achievers ETF do?
First Trust Rising Dividend Achievers ETF (RDVY) seeks to replicate the performance of the Nasdaq US Rising Dividend Achievers Index. The fund invests in companies with a demonstrated history of increasing their dividend payments, utilizing a selection process that emphasizes earnings growth, cash levels relative to debt, and dividend payout ratios. RDVY provides investors with a diversified portfolio of dividend growth stocks, offering potential for both income and capital appreciation. The ETF operates within the asset management industry, catering to investors seeking exposure to dividend-paying companies.
What are the main risks for RDVY?
The primary risks for RDVY include the potential for dividend cuts by constituent companies, which could negatively impact the fund's performance. Rising interest rates could also reduce the attractiveness of dividend stocks relative to bonds. Additionally, economic downturns could lead to decreased corporate earnings and subsequent dividend reductions. Increased competition from other dividend ETFs and changes in tax laws related to dividend income also pose potential risks to RDVY's performance and investor demand. The fund's beta of 1.04 indicates market volatility.
How does First Trust Rising Dividend Achievers ETF generate revenue in the financial services sector?
First Trust Rising Dividend Achievers ETF generates revenue primarily through management fees charged on its assets under management (AUM). These fees are a percentage of the total value of the ETF's holdings and are deducted from the fund's assets. The more assets the fund manages, the higher the revenue generated. The fund's profitability is also influenced by its ability to attract and retain investors, as well as its operational efficiency in managing expenses. The ETF does not generate revenue through interest income or lending activities, as it is not a bank or lending institution.
What are the key factors that determine the composition of the Nasdaq US Rising Dividend Achievers Index?
The Nasdaq US Rising Dividend Achievers Index, which RDVY tracks, selects companies based on a history of raising dividends and the potential to continue doing so. The index construction process considers a company's earnings growth, levels of cash compared to debt, and the amount of earnings paid out as dividends. Companies must have a minimum history of dividend increases to be eligible for inclusion. The index methodology aims to identify companies with strong financial health and a commitment to returning value to shareholders through consistent dividend growth.
What are the key factors to evaluate for RDVY?
First Trust Rising Dividend Achievers ETF (RDVY) holds an AI score of 47/100 (low). Not financial advice.
How frequently does RDVY data refresh on this page?
RDVY prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven RDVY's recent stock price performance?
First Trust Rising Dividend Achievers ETF (RDVY) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Focus on companies with a history of raising dividends. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider RDVY overvalued or undervalued right now?
Valuing First Trust Rising Dividend Achievers ETF (RDVY) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for RDVY, limiting the depth of some insights.
- Information on CEO James M. Dykas is limited in the provided context.