What Is the RDVI ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
The FT Vest Rising Dividend Achievers Target Income ETF (RDVI) is an actively managed fund that layers call option selling on top of a dividend growth stock portfolio to generate monthly income. This guide walks through how the income is created, how much upside participation remains, the fee burden, how it differs from similar dividend ETFs, and the outlook.
SubscribeWhat Is the FT Vest Rising Dividend Achievers Target Income ETF?
This is an active ETF that holds U.S. companies with a track record of raising their dividends, then sells short-dated call options on top and passes the option premium through as income. The options are written on only part of the portfolio rather than the whole, which leaves room to participate in share price gains.
It suits income investors who value monthly cash flow but do not want to give up equity upside entirely.
It is an actively managed ETF run by First Trust.
How Does the FT Vest Rising Dividend Achievers Target Income ETF Invest?
| Item | Details |
|---|---|
| Tracked index | None (active management) |
| Management style | Active (dividend growth stocks + covered calls) |
| Rebalancing frequency | Periodic rollover aligned with option expiration |
| Dividend/distribution frequency | Monthly distributions |
| Total expense ratio | 0.75% |
| Underlying assets | U.S. dividend growth stocks |
The fund screens U.S. stocks based on their history of dividend increases and their financial strength, then sells short-term call options on a portion of them. The option premium funds the monthly distributions, while the part of the portfolio without options tracks share price gains in full. Financials, technology, and industrials make up large weightings.
- A structure that sells call options on only part of the portfolio, leaving room for upside participation
- Active management that combines dividend growth selection with option income in a single product
- Distributions paid monthly
FT Vest Rising Dividend Achievers Target Income ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $3.9B, and the total expense ratio (Expense Ratio) is 0.75% per year.
Because income comes from option premiums as well as dividends, the distribution level can swing with the volatility environment. The fee burden is higher than that of pure index-based dividend ETFs.
FT Vest Rising Dividend Achievers Target Income ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund follows the path of dividend growth stocks themselves, but on the portion where calls are sold, gains get cut off in strong rallies. Conversely, in sideways markets or mild pullbacks, the option premium acts as a cushion, and the fund holds up relatively well.
The direction of interest rates and demand for income drive fund flows. When deposit and bond yields fall, money tends to move into monthly-paying equity income products, while rising rates tend to make dividend-oriented assets as a whole relatively less attractive.
FT Vest Rising Dividend Achievers Target Income ETF Pros and Cons
Its strength is a design that balances monthly distributions with upside participation, while its weaknesses are capped gains in bull markets and the fee burden.
💪 Key Strengths
⚠️ Points to Watch
FT Vest Rising Dividend Achievers Target Income ETF Alternative ETFs and Related Products
The SCHD ETF, VYM ETF, and VIG ETF shown in the table are low-fee dividend products that track their indexes directly, so they differ clearly from this ETF in terms of fees and fund size. A product closer in selection criteria is RDVY from the same issuer, and this ETF is essentially that approach with an option income layer added. Investors who want stronger income may compare it with JEPI, DIVO, and similar funds, while those who want pure dividend growth exposure may compare it with DGRO, NOBL, and similar funds.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SCHD | Schwab US Dividend Equity ETF | $36.02 | +0.5% | $122.7B | 0.06% | 2.92% | +32.5% |
 VIG | Vanguard Dividend Appreciation FTF | $251.84 | +0.8% | $117.1B | 0.04% | 1.45% | +15.1% |
 VYM | Vanguard High Dividend Yield Indx ETF | $164.99 | +0.9% | $83.2B | 0.04% | 2.23% | +16.1% |
 DFAC | U.S. Core Equity 2 Portfolio-ETF Class Shares | $45.17 | +1.0% | $49.1B | 0.18% | 0.87% | +15.1% |
 RDVY | First Trust Rising Dividend Achievers ETF | $80.30 | +1.2% | $25.6B | 0.47% | 0.85% | +18.2% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| LRCX | Lam Research Corp | 0.07% | $235.88 | +6.1% | $294.7B | 35.1 | 0.56% |
| AMAT | Applied Materials Inc | 0.07% | $395.08 | +6.0% | $313.5B | 34.1 | 0.49% |
| GEV | GE Vernova Inc | 0.03% | $808.24 | +1.4% | $213.9B | 21.2 | 0.25% |
| KLAC | KLA Corp | 0.06% | $161.01 | +5.2% | $209.8B | 40.2 | 0.58% |
| GOOGL | Alphabet Inc | 0.03% | $293.45 | +2.1% | $3.57T | 15.3 | 0.3% |
| MPWR | Monolithic Power System Inc | 0.03% | $1478.69 | +8.9% | $72.1B | 81.6 | 0.52% |
| BKR | Baker Hughes Co | 0.03% | $49.41 | +3.4% | $49.1B | 17.0 | 1.88% |
FT Vest Rising Dividend Achievers Target Income ETF Investor Checkpoints
This ETF blends dividends and option premiums, so judging it by the same standards as an ordinary dividend ETF leads to misunderstandings. Here are the items to check before investing.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Total expense ratio | Cost difference compared with index-based dividend ETFs | Somewhat high |
| 📆 Distribution frequency | Whether payments are monthly and how the income sources are composed | Monthly distributions maintained |
| 📉 Upside cap | How the call option selling ratio affects returns | Capped in some ranges |
| 🏦 Sector composition | Degree of concentration in financials and technology | Weightings need checking |
The structural limit of failing to keep pace with the index in bull markets is the key weakness. Because distributions rely on option premiums, income also shrinks when markets calm down, and Korean won-based investors also bear exchange rate fluctuations.
The structure suits investors who want monthly cash flow while keeping some upside participation. If the goal is maximizing total return, a low-fee dividend growth product may be more advantageous, so decide on your objective first and then choose.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of September 3, 2026.
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