Summary
RDVI: Targeting A Positive Income Outcome With Capital Appreciation
First Trust FT Vest Rising Dividend Achievers Target Income ETF (RDVI) targets an 8% yield above the S&P 500, blending dividend growth equities with partial covered calls. RDVI's unique strategy selects Nasdaq dividend growers and writes S&P 500 index calls, aiming for steady income and some capital appreciation. RDVI has delivered strong, rising monthly distributions and robust total returns since inception, but lacks a track record through a significant market correction.
RDVI: The Covered Call ETF No One Is Talking About - And It's Quietly Beating S&P 500 Peers
FT Vest Rising Dividend Achievers Target Inc ETF (RDVI) offers a covered call strategy on an S&P 500-like portfolio, structurally set up for strong upside capture. RDVI writes short-dated, at-the-money calls on only ~19% of the portfolio, enabling superior upside participation versus peers but providing limited drawdown protection. The fund targets an 8% yield above the S&P 500, with payouts largely taxed as ordinary income and an expense ratio of ~0.75%.
RDVI: An S&P 500 Option Strategy That Misses The Mark
FT Vest Rising Dividend Achievers Target Income ETF is rated Hold due to a risky strategy and poor risk-adjusted returns versus the S&P 500. RDVI's approach mismatches its rising dividend equity portfolio with S&P 500-based call writing, exposing investors to basis risk and underperformance. Despite an 8.44% yield, RDVI's high expense ratio (0.75%) and sector concentration lead to lower total returns and higher volatility than VOO.
FT Vest Rising Dividend Achievers Fund Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 281,685 | $6.97M | $8.16M | $1.19M | 17.11% |
| TMB Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 8,943 | $227,381.52 | $259,123.42 | $31,741.9 | 13.96% |
| CE Curtis Ellergodt Rothschild Investment LLC | 3,775 | $92,412 | $109,380.62 | $16,968.62 | 18.36% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 934,811 | $22.82M | $27M | $4.18M | 18.32% |
| RS Ramu Singh CALTON & ASSOCIATES Inc. | 102,719 | $2.64M | $2.98M | $335,573.12 | 12.71% |
FT Vest Rising Dividend Achievers Fund (RDVI) FAQ
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FT Vest Rising Dividend Achievers Fund Profile
| BATS Exchange | US Country |
Overview
The company specializes in investment management, focusing on creating a portfolio primarily composed of dividend-paying securities. Its strategic approach aims to maintain at least 80% of its net assets in investments that yield dividends or offer exposure to such dividend-paying securities. The investment philosophy is tailored to provide income through stock dividends and option premiums, targeting a distribution rate significantly above the traditional annual dividend yield of the S&P 500® Index. This ambition is realized under normal market conditions, with the fund also employing borrowings for investment purposes when necessary. Unlike diversified funds, this entity adopts a non-diversified fund strategy, indicating a possibly concentrated investment in fewer issuers.
Products and Services
- Dividend-Paying Securities Investment
This service includes the selection and investment in stocks and other securities known for distributing dividends. The primary goal is to generate income for investors through dividends, focusing on securities that can ensure stable and potential growth in dividend payouts over time.
- Exposure to Dividend-Paying Securities
The fund offers investment strategies that provide exposure to dividend-paying securities without the need for direct investment. This may involve the use of financial derivatives or other instruments that mimic the performance of dividend-yielding stocks, offering investors a diversified approach to income generation.
- Distributions from Stock Dividends and Option Premiums
Alongside dividends, the company seeks to enhance investor returns through the strategic use of options. This includes writing options against holdings or indexes to generate additional income from option premiums, complemented by the income from stock dividends. The aim is to achieve a total annual distribution rate that exceeds the current annual dividend yield of the S&P 500® Index by approximately 8.0%.
