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RDVY - ETF AI Analysis

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RDVY

First Trust Rising Dividend Achievers ETF (RDVY)

Rating:75Outperform
Price Target:
RDVY, the First Trust Rising Dividend Achievers ETF, has a solid overall rating driven by high-quality companies with strong financial performance and growth prospects. Standout holdings like Alphabet, Ross Stores, and Chubb support the fund’s strength through robust earnings, positive outlooks, and strategic positioning in areas like AI, retail, and insurance. The main risk factor is that several top holdings show signs of potential overvaluation or overbought technical conditions, which could increase volatility if market sentiment shifts.
Positive Factors
Strong Top Holdings Performance
Many of the largest positions, especially in technology and industrial names, have shown strong gains this year, helping drive the fund’s overall results.
Sector Diversification Across the Economy
The ETF spreads its investments across financials, technology, industrials, consumer sectors, and more, which helps reduce the impact if any one industry slows down.
Solid Recent Performance Trend
The fund has delivered positive returns over the past month, three months, and year-to-date, indicating steady recent momentum.
Negative Factors
Heavy Tilt Toward Financials
With a large share of assets in financial stocks, the fund is more exposed if that sector faces pressure from interest rate changes or economic weakness.
High U.S.-Only Concentration
Almost all of the ETF’s holdings are in U.S. companies, offering little geographic diversification if the U.S. market underperforms other regions.
Above-Average Expense Ratio
The fund’s expense ratio is higher than many low-cost index ETFs, which means more of the return is used to cover fees over time.

RDVY vs. SPDR S&P 500 ETF (SPY)

RDVY Summary

The First Trust Rising Dividend Achievers ETF (RDVY) tracks the NASDAQ US Rising Dividend Achievers index, focusing on large U.S. companies that have a history of steadily increasing their dividend payments. It holds well-known names like Alphabet (Google’s parent company) and Bank of New York Mellon, along with other strong financial, technology, and industrial firms. Someone might invest in RDVY to seek a mix of income from dividends and potential long-term growth, while spreading money across many companies. A key risk is that stock prices and dividend payments can still go up and down with the overall market.
How much will it cost me?The First Trust Rising Dividend Achievers ETF (RDVY) has an expense ratio of 0.48%, meaning you’ll pay $4.80 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is actively managed, focusing on selecting companies with strong financial health and rising dividends.
What would affect this ETF?The RDVY ETF, with its focus on U.S. large-cap companies that consistently grow dividends, could benefit from a stable economic environment and strong corporate earnings, particularly in sectors like technology and financials, which make up a significant portion of its holdings. However, rising interest rates or economic slowdowns could negatively impact dividend-paying companies and sectors like consumer cyclical and industrials, potentially affecting the ETF's performance. Regulatory changes or shifts in market sentiment toward growth stocks over dividend-focused investments could also pose challenges.

RDVY Top 10 Holdings

RDVY’s story is powered by a cluster of U.S. dividend growers, with chip-equipment names like Lam Research, Applied Materials, KLA, and especially fast-rising Monolithic Power acting as the fund’s main engines lately. GE Vernova has also been climbing, adding an industrial tailwind, while Alphabet provides a steadier tech and AI backbone rather than fireworks. Financials such as Bank of New York Mellon are contributing solid, if unspectacular, support, and Baker Hughes has been more mixed, occasionally dragging. Overall, the ETF leans heavily on U.S. technology and financials for its momentum.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Lam Research3.71%$816.60M$334.88B262.54%
77
Outperform
Applied Materials3.39%$745.98M$330.97B168.49%
77
Outperform
KLA3.30%$725.20M$253.63B173.88%
77
Outperform
GE Vernova Inc.3.22%$708.67M$308.81B202.72%
69
Neutral
Alphabet Class A2.58%$566.79M$4.15T118.13%
85
Outperform
Monolithic Power2.57%$566.62M$80.16B171.28%
75
Outperform
Baker Hughes Company2.52%$555.66M$68.37B88.84%
76
Outperform
Mueller Industries2.45%$538.90M$15.04B87.40%
78
Outperform
Ross Stores2.43%$535.56M$72.92B62.28%
80
Outperform
Nvidia2.33%$513.63M$5.06T99.22%
76
Outperform

RDVY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
71.23
Positive
100DMA
71.24
Positive
200DMA
68.49
Positive
Market Momentum
MACD
1.15
Positive
RSI
61.27
Neutral
STOCH
42.07
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RDVY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 73.46, equal to the 50-day MA of 71.23, and equal to the 200-day MA of 68.49, indicating a bullish trend. The MACD of 1.15 indicates Positive momentum. The RSI at 61.27 is Neutral, neither overbought nor oversold. The STOCH value of 42.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDVY.

RDVY Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$21.81B0.47%
75
Outperform
$910.18B0.03%
74
Outperform
$783.42B0.03%
74
Outperform
$723.44B0.09%
74
Outperform
$427.02B0.18%
75
Outperform
$134.92B0.02%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RDVY
First Trust Rising Dividend Achievers ETF
74.25
16.49
28.55%
VOO
Vanguard S&P 500 ETF
IVV
iShares Core S&P 500 ETF
SPY
SPDR S&P 500 ETF Trust
QQQ
Invesco QQQ Trust
SPYM
State Street SPDR Portfolio S&P 500 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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