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SDVY - ETF AI Analysis

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SDVY

First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)

Rating:74Outperform
Price Target:
SDVY’s rating reflects a generally strong portfolio of smaller and mid-sized companies with solid financial performance and growth, led by holdings like Comfort Systems USA (FIX), EnerSys (ENS), and Mueller Industries (MLI), which benefit from robust revenue trends, positive earnings calls, and strategic growth initiatives. Some positions such as Weatherford International (WFRD), EMCOR Group (EME), and Interactive Brokers (IBKR) introduce caution due to issues like revenue or cash flow concerns, overvaluation signals, or bearish technical trends. The main risk factor is that several holdings show valuation and technical warning signs, which could increase volatility even though the overall fundamentals are strong.
Positive Factors
Strong Recent Performance
The ETF has delivered solid gains so far this year and in recent months, showing positive momentum.
Leading Holdings Performing Well
Most of the top 10 stocks, including names like Powell Industries and Comfort Systems, have posted strong year-to-date gains that support the fund’s returns.
Broad Sector Diversification Within the U.S.
The fund spreads its assets across several sectors such as financials, industrials, consumer stocks, and technology, which helps reduce the impact of weakness in any single industry.
Negative Factors
High Expense Ratio
The fund’s fee is relatively high for an ETF, which can eat into long-term returns compared with lower-cost options.
Heavy U.S. Concentration
With almost all assets invested in U.S. companies, the ETF offers little geographic diversification and is highly tied to the U.S. economy.
Sector Concentration in Financials and Industrials
A large portion of the portfolio is in financial and industrial stocks, which could hurt performance if these areas of the market struggle.

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

SDVY Summary

SDVY is the First Trust SMID Cap Rising Dividend Achievers ETF, which follows the Nasdaq US Small Mid Cap Rising Dividend Achievers Index. It invests mainly in U.S. small and mid-sized companies that have a history of steadily raising their dividends. The fund is spread across many sectors, with holdings like Northern Trust and Comfort Systems, aiming to give investors both growth potential and a growing income stream. Someone might invest in SDVY to diversify beyond large, well-known stocks. A key risk is that smaller companies can be more volatile, so the share price can move up and down more sharply than the overall market.
How much will it cost me?The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) has an expense ratio of 0.59%, which means you’ll pay $5.90 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, focusing on selecting small to mid-sized companies with a history of increasing dividends.
What would affect this ETF?The SDVY ETF, with its focus on small to mid-sized U.S. companies that consistently increase dividends, could benefit from economic growth and innovation in sectors like financials and industrials, which make up a significant portion of its holdings. However, it may face challenges if interest rates rise, as higher borrowing costs could pressure smaller companies, or if economic conditions weaken, impacting consumer cyclical and industrial sectors. Regulatory changes or sector-specific disruptions could also influence the performance of its top holdings.

SDVY Top 10 Holdings

SDVY is leaning hard into U.S. industrial and financial workhorses, and that tilt is paying off. Powell Industries has been a standout, surging this year and acting like a powerful engine for the fund. Comfort Systems and EMCOR Group are also rising steadily, reinforcing the industrial backbone. On the financial side, Northern Trust is climbing, adding a more traditional ballast to returns. Clear Secure brings a more tech-flavored, fast-growing twist, though its sharp run-up could be a bit frothy. Overall, performance leadership is broad, with few obvious laggards.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Comfort Systems1.96%$212.15M$70.81B365.45%
80
Outperform
Powell Industries1.50%$162.43M$11.67B449.46%
76
Outperform
EnerSys1.46%$158.25M$8.26B147.68%
79
Outperform
Primoris Services1.36%$147.28M$5.49B51.75%
75
Outperform
Weatherford International1.33%$144.23M$7.79B151.85%
72
Outperform
Clear Secure1.31%$141.62M$8.15B131.89%
77
Outperform
EMCOR Group1.23%$133.12M$41.94B117.38%
73
Outperform
Cboe Global Markets1.08%$116.77M$36.21B47.72%
75
Outperform
Mueller Industries1.07%$116.07M$15.38B88.52%
78
Outperform
Interactive Brokers1.06%$114.88M$38.79B93.65%
75
Outperform

SDVY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
40.85
Positive
100DMA
40.58
Positive
200DMA
38.92
Positive
Market Momentum
MACD
0.44
Positive
RSI
60.33
Neutral
STOCH
53.06
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SDVY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 42.00, equal to the 50-day MA of 40.85, and equal to the 200-day MA of 38.92, indicating a bullish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 53.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDVY.

SDVY Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$10.83B0.59%
74
Outperform
$932.03B0.03%
74
Outperform
$799.43B0.03%
74
Outperform
$740.90B0.09%
74
Outperform
$28.50B0.05%
65
Neutral
$13.49B0.28%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SDVY
First Trust SMID Cap Rising Dividend Achievers ETF
42.48
9.12
27.34%
VOO
Vanguard S&P 500 ETF
IVV
iShares Core S&P 500 ETF
SPY
SPDR S&P 500 ETF Trust
VXF
Vanguard Extended Market ETF
DFAT
Dimensional U.S. Targeted Value 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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