(SDVD) FT Vest SMID Rising - Ratings and Ratios

The FT Vest SMID Rising Dividend Achievers Target Income ETF (BATS:SDVD) is an actively managed exchange-traded fund that focuses on investing in small and mid-capitalization companies with a history of paying consistent dividends and a track record of dividend growth. Under normal market conditions, the fund allocates at least 80% of its net assets to dividend-paying securities, as well as investments that provide exposure to such securities.

The funds primary objective is to generate a steady income stream, while also pursuing a secondary goal of capital appreciation. As a non-diversified fund, SDVD may concentrate its investments in a relatively smaller number of securities, potentially increasing its exposure to individual stock risks. This approach requires a thorough analysis of the underlying holdings and a deep understanding of the funds overall strategy.

Given the current market conditions and the funds characteristics, we can analyze the technical data to identify potential trends. The funds price is currently at $19.95, above its 20-day and 50-day simple moving averages (SMA) of $19.12 and $19.36, respectively. However, it remains below its 200-day SMA of $20.70, indicating a potential long-term downtrend. The average true range (ATR) is $0.57, corresponding to a volatility of 2.87%. Considering the 52-week high and low prices of $23.22 and $17.51, respectively, the funds price is currently near the lower end of its recent range.

By combining the technical analysis with fundamental data, we can forecast the funds potential performance. With an AUM of $389.96M USD, SDVD has a relatively modest size, which may impact its liquidity and trading costs. However, its focus on dividend-paying securities and rising dividend achievers may provide a relatively stable source of income. Assuming a continuation of the current dividend trend and a moderate increase in interest rates, we can expect the funds price to appreciate moderately in the near term, potentially reaching $21.50 within the next 6-12 months, representing a 7.8% upside from the current price.

To achieve this forecast, the funds management team will need to continue to identify and invest in high-quality, dividend-paying securities, while also managing the funds overall risk profile. Investors should closely monitor the funds performance, as well as changes in market conditions, to adjust their investment strategies accordingly.