First Trust Rising Dividend Achievers ETF surpasses Schwab U.S. Dividend Equity ETF in long-term returns despite lower yield.
The First Trust Rising Dividend Achievers ETF (NASDAQ: RDVY) has delivered an average annual return of 15.96% over the past decade, outpacing the Schwab U.S. Dividend Equity ETF (SCHD), which returned 12.5%. Both funds use dividend growth, yield, and balance sheet quality in their methodologies but differ in sector allocations.
RDVY holds significant overweights in financials and technology while underweighting healthcare, energy, and consumer staples. This growth-oriented tilt has driven its stronger performance but also resulted in 20% greater volatility than SCHD. RDVY’s dividend yield stands at 0.8%, compared to SCHD’s 3.3%.
The fund’s focus on rising dividends and earnings growth has attracted investors seeking capital appreciation over income, though its lower yield may limit appeal for income-focused strategies.