(SDVY) First Trust SMID Cap Rising - Ratings and Ratios

The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) is an actively managed exchange-traded fund that focuses on investing in a portfolio of small- to mid-cap stocks that have demonstrated a consistent track record of dividend growth. The funds investment strategy is centered around identifying companies that have increased their dividend payouts over the past three and five years, indicating a strong financial position and commitment to returning value to shareholders.

By investing at least 90% of its net assets in the constituent stocks of its underlying index, SDVY provides investors with a diversified portfolio of dividend achievers. The indexs methodology is designed to capture the performance of companies that have exhibited a rising dividend trend, which can be a key indicator of a companys financial health, managements confidence in future prospects, and overall investment quality.

From a technical analysis perspective, the current price of SDVY is $34.91, which is above its 20-day simple moving average (SMA) of $34.63, indicating a short-term bullish trend. The 50-day SMA is $33.18, and the 200-day SMA is $35.38, suggesting that the fund is experiencing a moderate uptrend. The average true range (ATR) is 1.54%, indicating relatively moderate volatility.

Using the available technical and fundamental data, a forecast for SDVY can be constructed. Given the funds current price and the fact that it is trading below its 52-week high of $39.95, there is potential for upside if the underlying stocks continue to perform well. Additionally, the funds AUM of $7.873 billion suggests that it has a significant presence in the market, which can contribute to liquidity and stability. If the dividend growth trend continues, and the underlying companies maintain their financial health, SDVY may be poised for further growth, potentially targeting the $39.95 level or higher. However, if the market experiences a downturn, or the underlying stocks fail to maintain their dividend growth, the funds price may be subject to a correction.