First Trust Rising Dividend Achievers ETF

Frequently Asked Questions About RDVY

What does RDVY invest in?

First Trust Exchange-Traded Fund VI - First Trust Rising Dividend Achievers ETF is an exchange traded fund launched and managed by First Trust Advisors LP. It invests in public equity markets of the United States. The fund invests in stocks of companies operating across diversified sectors. It invests in growth and value stocks of large-cap companies. The fund invests in dividend paying stocks of companies. It seeks to track the performance of the NASDAQ US Rising Dividend Achievers Index, by using full replication technique. First Trust Exchange-Traded Fund VI - First Trust Rising Dividend Achievers ETF was formed on January 6, 2014 and is domiciled in the United States.

What is the expense ratio of RDVY?

First Trust Rising Dividend Achievers ETF (RDVY) charges an expense ratio of 0.47%. This is the annual fee deducted from fund assets to cover management and operations.

What is RDVY's distribution yield?

RDVY's trailing-twelve-month yield is 0.82%, calculated from the sum of distributions over the past year divided by the current price.

How does RDVY's covered-call strategy work?

RDVY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is RDVY?

First Trust Rising Dividend Achievers ETF (RDVY) manages $25.43B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is RDVY actively managed or an index fund?

RDVY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.