This Dividend ETF Has Outperformed Many Actively Managed Funds Over 10 Years
The First Trust Rising Dividend Achievers ETF has a performance history that rivals any dividend ETF available today.
Overview
The First Trust Rising Dividend Achievers ETF (NASDAQ: RDVY) may not be as familiar to you as the Vanguard Dividend Appreciation ETF or the Schwab U.S. Dividend Equity ETF. But in terms of historical returns and portfolio construction strategy, it should be.
Over the past decade, its 16.5% average annual return puts it at No. 1 in the U.S. Dividend ETF category. It's also beating the next closest fund, the Siren DIVCON Leaders Dividend ETF, by more than two full percentage points annually. It's even outperformed the Vanguard S&P 500 ETF over the past decade.
Details
More impressively, it has accomplished this track record without having tech as its biggest sector holding. That distinction currently belongs to financials, which accounts for roughly 31% of the portfolio and has consistently been the top holding over the past decade.
Source
Originally published at www.fool.com.