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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, is supported by several high-quality holdings like Alphabet and leading semiconductor names such as Applied Materials, Lam Research, and KLA, all of which show strong financial performance and solid growth prospects, especially in AI and advanced technologies. Financial and insurance leaders like Chubb, Travelers, and Bank of New York Mellon further strengthen the fund with robust profitability and generally attractive valuations, though some holdings show signs of being overbought or potentially overvalued. The main risk factor is the fund’s meaningful exposure to cyclical sectors like semiconductors and industrials, where valuation concerns, regulatory challenges, and segment-specific issues (such as wind and aerospace) could add volatility.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year and over the past few months, showing solid recent momentum.
Leading Technology and Industrial Holdings
Several top positions in technology and industrial companies have shown strong performance, helping drive the fund’s returns.
Large Asset Base
The fund manages a very large pool of assets, which can support liquidity and trading efficiency for investors.
Negative Factors
High Sector Concentration in Financials
A large share of the portfolio is invested in financial companies, which increases the fund’s sensitivity to problems in that sector.
Limited International Diversification
Almost all of the ETF’s holdings are in U.S. companies, offering little geographic diversification if the U.S. market weakens.
Above-Average Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees.

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 a mix of financial, technology, and industrial firms, including well-known names like Bank of America and Alphabet (Google’s parent company). Someone might invest in RDVY to seek a combination of income from dividends and long-term growth from solid, established businesses. A key risk is that the fund is heavily invested in financial and tech stocks, so its value can rise and fall with those parts of the 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 is being steered by a powerful mix of U.S. financials and chip-equipment makers, with names like Bank of America, BNY Mellon, and Travelers quietly rising and doing much of the heavy lifting. On the tech side, Applied Materials, Lam Research, and KLA have had a choppier ride lately—strong year-to-date but recently losing a bit of steam, which can tug on short-term results. GE Vernova’s momentum looks more mixed, adding some wobble. Overall, this is a U.S.-centric, dividend-focused fund with a clear tilt toward financials and semiconductor-related tech.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Applied Materials3.29%$818.75M$403.07B182.05%
77
Outperform
Lam Research2.99%$743.72M$366.44B204.06%
77
Outperform
KLA2.51%$624.18M$238.81B106.19%
77
Outperform
Ross Stores2.37%$589.61M$80.54B83.25%
80
Outperform
GE Vernova Inc.2.36%$587.84M$263.75B50.84%
69
Neutral
Bank of New York Mellon2.33%$578.75M$107.30B56.63%
75
Outperform
Travelers Companies2.27%$564.78M$78.08B44.92%
78
Outperform
Allstate2.23%$554.47M$67.98B32.19%
74
Outperform
Bank of America2.13%$529.19M$439.63B35.68%
72
Outperform
Alphabet Class A2.12%$526.43M$4.36T88.30%
85
Outperform

RDVY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
78.52
Positive
100DMA
75.12
Positive
200DMA
72.32
Positive
Market Momentum
MACD
0.56
Positive
RSI
58.91
Neutral
STOCH
65.44
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 80.15, equal to the 50-day MA of 78.52, and equal to the 200-day MA of 72.32, indicating a bullish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 65.44 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
$24.81B0.47%
75
Outperform
$986.86B0.03%
74
Outperform
$863.10B0.03%
74
Outperform
$776.18B0.09%
74
Outperform
$450.09B0.18%
73
Outperform
$158.18B0.02%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RDVY
First Trust Rising Dividend Achievers ETF
81.09
18.03
28.59%
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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