(RDVI) FT Cboe Vest Rising - Ratings and Ratios

The FT Cboe Vest Rising Dividend Achievers Target Income ETF (BATS:RDVI) is an actively managed exchange-traded fund that focuses on generating income through dividend-paying securities and options premiums. Under normal market conditions, the fund invests at least 80% of its net assets in dividend-paying stocks and/or investments that provide exposure to such securities.

The advisers primary objective is to achieve an annual distribution rate of approximately 8.0% above the current annual dividend yield of the S&P 500 Index, thereby providing a relatively stable income stream to investors. To accomplish this, the fund may employ a combination of dividend-paying stocks and options strategies to generate premium income.

As a non-diversified fund, RDVI may have a more concentrated portfolio, which can result in higher volatility. However, this also allows the adviser to focus on the most attractive income-generating opportunities. With an AUM of $1.94 billion, the fund has a sizable presence in the market, which can contribute to liquidity and stability.

Analyzing the technical data, we can see that the funds price is currently above its 20-day and 50-day simple moving averages, indicating a positive short-term trend. The 200-day SMA is also below the current price, suggesting a longer-term uptrend. The ATR indicates a relatively moderate level of volatility. Based on these technical indicators, we can forecast that the funds price will continue to trend upwards in the short-term, potentially reaching $25.50 within the next few weeks.

Using fundamental data, we can analyze the funds dividend yield and distribution rate. Assuming the S&P 500 Index dividend yield remains relatively stable, the funds target distribution rate of 8.0% above the S&P 500 yield would translate to a distribution yield of around 4.5-5.0%. This is an attractive yield for income-seeking investors. Based on this analysis, we forecast that the fund will maintain its distribution rate and continue to attract investors seeking income, potentially driving the price higher.

Combining both technical and fundamental analysis, our forecast suggests that RDVI will continue to perform well in the short-term, driven by its attractive yield and relatively stable income stream. As the S&P 500 Index dividend yield evolves, the funds distribution rate is likely to remain competitive, supporting the price. We expect RDVI to reach $26.00 within the next 3-6 months, making it a potentially attractive investment opportunity for income-focused investors.