- RDVY has been a top-performing dividend-focused ETF since it launched in 2014. Fees are high at 0.50% annually but investors have been rewarded with consistent outperformance.
- Its screening process selects 50 Nasdaq companies that have strong dividend track records, high cash to total debt ratios, and low payout ratios.
- Valuations are low and growth rates are high, suggesting the potential for outperformance in bull and bear markets. However, it's ultra-concentrated mainly in just two sectors.
- RDVY's concentration and high volatility levels are reasons for the downgrade today. I am concerned another substantial drawdown may happen, and think a better entry point will come soon.
For further details see:
RDVY: Why I'm Downgrading The Rising Dividend Achievers