RDVY ETF Factor Report

Validea's fundamental report on the First Trust NASDAQ Rising Div Achiev ETF (RDVY) characterizes it as a Large-Cap Quality ETF, with its portfolio primarily concentrated in the Financial sector and Software & Programming industry. The analysis reveals a high Quality factor score of 90, alongside moderate exposures to Value (66), Low Volatility (65), and Momentum (57), offering institutional investors a clear quantitative profile of the ETF's factor alignment and sector weighting.

Analysis

The First Trust NASDAQ Rising Div Achiev ETF (RDVY) is quantitatively profiled as a Large-Cap Quality fund, distinguished by an exceptionally high exposure to the Quality factor with a score of 90 out of 99. This primary characteristic is complemented by moderate-to-high exposures to Value and Low Volatility, scoring 66 and 65 respectively, while maintaining a more neutral stance on Momentum at 57. The ETF's portfolio construction reflects this factor profile, showing a significant concentration in the Financial sector and the Software & Programming industry. The fund's mandate, implied by its "Rising Dividend Achievers" name, aligns with its high Quality score, suggesting a strategy focused on financially robust firms with a history of growing dividends rather than targeting pure momentum or deep-value opportunities.

Key Decisions for Investors

• Investors seeking core portfolio exposure to high-quality, dividend-growing large-cap stocks could find RDVY's standout Quality factor score of 90 particularly attractive.
• Given the ETF's significant weighting in the Financial and Software & Programming sectors, investors should review their existing allocations to avoid unintended concentration risk.
• The fund's moderate Momentum score of 57 suggests it is better suited for long-term, quality-focused strategies and may underperform in markets driven by strong momentum trends.
• As a multi-factor product with strong Quality, moderate Value (66), and Low Volatility (65) scores, RDVY could serve as a blended core holding for those seeking a defensively-tilted equity exposure.