First Trust SMID Cap Rising Dividend Achievers ETF (SDVY)

Overview

The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) seeks investment results that correspond generally to the price and yield of the NASDAQ US Small Mid Cap Rising Dividend Achievers Index. It focuses on small- and mid-cap companies with a history of raising dividends.

Reputation and Reliability

First Trust is a well-established ETF provider with a solid reputation for innovative and reliable investment products.

Management Expertise

First Trust has a dedicated team of portfolio managers and analysts with experience in dividend-focused investing and ETF management.

Goal

To provide investment results that correspond generally to the price and yield of the NASDAQ US Small Mid Cap Rising Dividend Achievers Index.

Investment Approach and Strategy

Strategy: Tracks the NASDAQ US Small Mid Cap Rising Dividend Achievers Index.

Composition Primarily holds dividend-paying stocks of small- and mid-capitalization U.S. companies.

Market Share: SDVY's market share within the dividend-focused small/mid-cap ETF segment is moderate.

Total Net Assets (AUM): 872159190

Key Competitors

• Vanguard Dividend Appreciation ETF (VIG)
• Schwab US Dividend Equity ETF (SCHD)
• ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL)

Competitive Landscape

The dividend ETF market is competitive, with several large players. SDVY focuses on the SMID-cap space, differentiating it from larger dividend ETFs. Its advantage lies in targeting rising dividends within smaller companies, while its disadvantage is potentially higher volatility compared to larger, more established dividend ETFs.

Historical Performance: Historical performance data is readily available from financial data providers; return figures vary based on the observation period.

Benchmark Comparison: SDVY's performance should be compared to the NASDAQ US Small Mid Cap Rising Dividend Achievers Index to gauge its tracking effectiveness.

Expense Ratio: 0.59

Average Trading Volume

SDVY's average trading volume indicates moderate liquidity, allowing investors to buy and sell shares reasonably efficiently.

Bid-Ask Spread

The bid-ask spread for SDVY is generally tight, reflecting sufficient trading interest.

Market Environment Factors

Economic growth, interest rate policies, and investor sentiment toward dividend-paying stocks all impact SDVY.

Growth Trajectory

SDVY's growth is tied to the performance of small- and mid-cap dividend stocks and the overall market environment.

Competitive Edge

SDVY's competitive edge lies in its targeted focus on SMID-cap companies with a history of increasing dividends, providing a unique investment strategy for investors seeking both growth and income. This focus differentiates it from broader dividend ETFs that often include larger companies. Its rules-based approach ensures consistency in stock selection and dividend growth. However, the SMID-cap focus may also result in increased volatility when compared to ETFs holding larger companies.

Volatility

SDVY exhibits moderate volatility, typical of SMID-cap stocks.

Market Risk

SDVY is susceptible to market risk, sector-specific risks, and risks associated with smaller companies.

Ideal Investor Profile

The ideal investor is seeking dividend income and potential capital appreciation from SMID-cap companies with a history of raising dividends.

Market Risk

SDVY is suitable for long-term investors seeking both income and growth, but also willing to accept moderate levels of volatility.

The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) provides exposure to dividend-paying small and mid-cap companies with a history of dividend increases. Its targeted approach distinguishes it from broader dividend ETFs. SDVY offers a blend of income and growth potential, although volatility is a consideration. Investors should compare the fund's performance against the NASDAQ US Small Mid Cap Rising Dividend Achievers Index. This ETF can be a good investment for long term investor seeking the power of the SMID cap companies.

Data Sources:

• First Trust Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.