What Is RDVY? First Trust Rising Dividend Achievers ETF
Last updated September 2026
Short answer
RDVY is First Trust Rising Dividend Achievers ETF, an ETF that tracks an index of companies with a record of rising dividends at a 0.47% expense ratio. RDVY screens for companies raising their dividends rather than for companies paying large ones, and the distinction produces a portfolio most people would not predict from the name. Its largest holdings are Applied Materials, Lam Research and KLA, three semiconductor equipment manufacturers, and the fund yields 0.83%. Anyone buying this for income will be disappointed; anyone buying it as a quality-growth screen with a dividend filter is getting closer to what it actually is.
RDVY is issued by First Trust and tracks an index of companies with a record of rising dividends. It charges a 0.47% expense ratio, holds approximately $24.5B in assets under management, yields about 0.83%, and launched in 2014.
Rising dividends is not the same as high dividends
A high-yield screen selects companies distributing a lot relative to their share price, which tends to surface utilities, telecoms and companies whose prices have fallen. A rising-dividend screen selects companies increasing their payouts, which requires growing earnings and tends to surface profitable, expanding businesses.
The two screens produce almost opposite portfolios. RDVY's 0.83% yield is lower than the broad market's, which is the clearest possible evidence that this is not an income fund. What it is closer to is a profitability and growth screen using dividend increases as the quality signal.
The portfolio in practice
Applied Materials at 4.7%, Lam Research at 4.4% and KLA at 4.1% lead the fund, with GE Vernova at 2.8% and BNY at 2.2% behind. Financials are 37% of the sector weight, technology 27% and industrials 13%.
That combination of semiconductor equipment and financials is unusual and is a direct product of the screen: both groups have been raising distributions from growing earnings. It also means the fund is more cyclical than a traditional dividend fund, since semiconductor equipment is among the most cyclical industries there is.
At 0.47% it is expensive relative to broad index alternatives, and that fee is the price of the screen.
RDVY holdings: top 10
Approximate weights as of August 2026. Each ticker links to its individual stock guide in Walnut.
How do I invest in RDVY?
There are three common ways to get RDVY exposure. Buy shares (or fractional shares) of RDVY directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so RDVY sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. RDVY trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is RDVY a good buy?
Whether RDVY is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks an index of companies with a record of rising dividends, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is RDVY a buy?
The bottom line on RDVY
RDVY gives you an index of companies with a record of rising dividends exposure in one ticker at a 0.47% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on RDVY
Whether RDVY is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is RDVY a buy?
RDVY yields 0.83% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see RDVY dividend: yield and schedule.
New to funds like RDVY? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how RDVY fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in RDVY with AI
Connect the broker you already use and ask Walnut's AI how RDVY fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is RDVY?
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RDVY is the First Trust Rising Dividend Achievers ETF. It screens for companies with a record of increasing their dividends, alongside tests on earnings growth and balance-sheet strength. It charges 0.47%, holds about $24.5B, yields roughly 0.83%, and launched in 2014.
Why does RDVY only yield 0.83%?
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Because it screens for companies raising their dividends, not for companies paying large ones. Those are close to opposite tests. Rising-dividend screens select growing, profitable businesses that often distribute a small share of earnings, so the yield ends up below the broad market's.
Why does a dividend fund hold semiconductor equipment makers?
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Because Applied Materials, Lam Research and KLA have been raising their distributions from growing earnings, which is exactly what the screen looks for. It is a consistent result of the methodology, and it makes the fund considerably more cyclical than a traditional dividend fund.
Is RDVY a good income fund?
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No. At 0.83% it yields less than a broad market index fund. If income is the objective, a high-dividend or dividend-aristocrat fund is the right category and RDVY is the wrong instrument despite the name.
What does RDVY actually hold?
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Applied Materials at 4.7%, Lam Research at 4.4%, KLA at 4.1%, GE Vernova at 2.8% and BNY at 2.2%. By sector: financials 37%, technology 27% and industrials 13%.
Is 0.47% expensive?
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It is well above broad index funds at 0.03-0.06% and typical for a rules-based screened product. You are paying for the screen, so the question is whether selecting on dividend growth adds more than the fee costs over a full cycle.
How cyclical is RDVY?
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More than the name suggests. Semiconductor equipment is among the most cyclical industries in the market, and financials at 37% are sensitive to credit conditions. A traditional dividend fund weighted to utilities and staples would behave far more defensively.
Who is RDVY for?
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Someone who wants a quality-growth screen that uses dividend increases as the signal, and who understands they are not buying income. Someone who wants yield should look at high-dividend or aristocrat funds instead.
What is RDVY's expense ratio?
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RDVY has an expense ratio of 0.47% per year as of August 2026, charged by First Trust and deducted from the fund's value rather than billed to you separately. On a $10,000 position that is roughly $47 a year. Fees compound over time, so on a long-term holding the expense ratio is one of the few return drivers you control. It is worth comparing against other funds that track an index of companies with a record of rising dividends before you choose.
How do I compare RDVY to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. RDVY's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against First Trust's fund page or your broker before investing.