At a glance
RND charges 0.6% a year, above the 0.53% average of the 8 funds most like it (the 8th cheapest of 9). It has $4.8M in assets, the 9th largest of that group. Over the past year it returned +7.8% with distributions reinvested (S&P 500: +11.5%), 3rd of those 9 funds. Its ten largest positions make up 58.1% of the fund, out of 50 in all.
The short version
First Trust Bloomberg R&D Leaders ETF (RND) tracks the Bloomberg R&D Leaders Select Index: 50 US-listed companies whose research and development spending has grown at least three years running and is high relative to sales. In practice it leans on big tech: Alphabet, Nvidia, Amazon, Apple and Microsoft led its holdings as of June 30, 2026, when it had just $4.8 million in assets. Its 0.60% annual fee tops the 0.53% average of similar funds.
Price history
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RND +7.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| RND official prospectus, to Dec 31, 2025 | — | +22.29% | — | — | — | +29.96% |
| RND price data to Oct 27, 2026 | +9.5% | +7.8% | — | — | — | +23.8% |
- Over the year to Oct 27, 2026, RND returned +7.8%, 3rd of 9 among similar funds.
- Its worst full calendar year was 2025 (+22.4%); its best was 2025 (+22.4%).
- The deepest fall in its price history was 23.5% (Jan 23, 2025 to Apr 8, 2025), recovered by Jun 25, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.5% | — |
| 2025 | +22.4% | +22.29% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.What's inside
As of Jun 30, 2026, the fund held 50 securities; the ten largest made up 58.08% of assets.
| Holding | Weight | |
|---|---|---|
| ALPHABET INC | 8.47% | |
| NVIDIA CORP | 7.82% | |
| AMAZON.COM INC | 7.80% | |
| APPLE INC | 7.77% | |
| MICROSOFT CORP | 6.87% | |
| ELI LILLY & COMPANY | 4.45% | |
| BROADCOM INC | 4.16% | |
| TESLA INC | 3.86% | |
| AMPHENOL CORP | 3.52% | |
| META PLATFORMS INC | 3.36% | |
| AMGEN INC | 3.19% | |
| EATON CORP PLC | 2.70% | |
| DEERE & COMPANY | 2.61% | |
| ADVANCED MICRO DEVICES INC | 2.56% | |
| BOOKING HOLDINGS INC | 2.35% |
By country
United States 94.29%Ireland 5.61%By asset type
Stocks 99.9%By sector
Sectors of the companies held, for the 92% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +12.19%, +6.12%, -1.96%.
How it works
RND is an index fund: it aims to match the Bloomberg R&D Leaders Select Index, built by Bloomberg Index Services Limited, before fees. First Trust Advisors, the fund's adviser, has no say over which stocks go into the index. The fund normally holds every index stock at its index weight, a method called full replication.
The index starts with the Bloomberg US 1000 Index, the 1,000 largest US-listed companies. A stock must pass size and trading-volume screens, show three straight years of rising research and development (R&D) spending, and clear a cutoff for R&D spending as a share of revenue. The 50 largest survivors by free-float market value (the value of shares readily available to trade) make the cut. If fewer than 30 qualify, the rules loosen until 30 are chosen.
Weights start with free-float market value, then caps apply: no company above 8%, only the five largest above 4%, and no sector above 40% under Bloomberg's sector definitions. The index resets weights quarterly and reselects members twice a year. Portfolio turnover, the share of holdings replaced in a year, was 46%, per the prospectus filed July 29, 2026. Weights can drift past the caps between resets: Alphabet was 8.5% as of June 30, 2026. The fund can be concentrated in one industry when the index is.
What it really costs
- RND charges 0.6% a year, versus an average of 0.53% for the similar funds below (8th of 9, cheapest first).
In a retirement portfolio
It is a concentrated, tech-heavy stock fund with a one-year beta of 1.29 as of October 27, 2026, meaning bigger swings than the market, plus no income and a short record.
RND could add a tilt toward heavy R&D spenders beside a broad stock fund, though it leans on a few tech giants. Launched April 30, 2024, it has no record from the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, brought a 22.29% gain. Its deepest drop, 23.5% from January 23 to April 8, 2025, was made up by June 25, about 2.6 months later. One quick rebound says little about longer market slumps, and drawing cash during such a slide means cashing in shares at low prices.
It paid no distributions in the year through October 27, 2026, and its 0.60% fee tops the 0.53% average of similar funds. With about $4.8 million in assets as of June 30, 2026, it carries some risk of closing. Past results don't predict future returns, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a rules-based tilt toward companies with rising R&D budgets, like Alphabet, Nvidia and Eli Lilly, as a small add-on to broader holdings.
- Long-term savers who can ride out swings like the 23.5% drop from January to April 2025 and don't need income from the fund.
- Those who prefer published index rules (50 stocks, an 8% cap per company, quarterly rebalancing) to a manager's discretion over stock picks.
Look elsewhere if
- Cost-conscious investors: its 0.60% fee is above all but one of eight similar funds, and WisdomTree U.S. Quality Growth Fund (QGRW) charges 0.28%.
- Retirees who need income: it paid no distributions in the year through October 27, 2026, so spending money would come from cashing in shares.
- Those wary of tiny, young funds: it launched in April 2024 and held $4.8 million on June 30, 2026, smallest of nine comparable funds.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| RND this fund | — | 0.6% | $4.8M | +7.8% | — |
| PJFG PGIM Jennison Focused Growth ETF | 59% | 0.75% | $140.3M | +3.6% | +25.2% |
| QGRW WisdomTree U.S. Quality Growth Fund | 59% | 0.28% | $2.65B | +12.3% | +30.1% |
| WINN Harbor Long-Term Growers ETF | 58% | 0.57% | $1.13B | +5.5% | +25.4% |
| NUGO Nuveen Growth Opportunities ETF | 58% | 0.56% | $2.44B | +4.6% | +25.6% |
| PGRO Putnam Focused Large Cap Growth ETF | 56% | 0.56% | $212.1M | +3.1% | +24.6% |
| TGRW T. Rowe Price Growth Stock ETF | 54% | 0.52% | $1.03B | -0.6% | +21.4% |
| TGRT T. Rowe Price Growth ETF | 53% | 0.38% | $1.48B | +1.0% | +23.5% |
Questions investors ask
What does the RND ETF invest in?
RND invests in the 50 stocks of the Bloomberg R&D Leaders Select Index: US-listed companies whose research and development spending has grown for at least three years and is high relative to revenue. As of June 30, 2026, its largest holdings were Alphabet (8.5%), Nvidia (7.8%), Amazon (7.8%), Apple (7.8%) and Microsoft (6.9%), and its top 10 made up 58% of assets. About 94% was in US companies, with about 5.6% in Ireland-based firms such as Eaton.
Does RND pay a dividend?
No, not in the year through October 27, 2026: RND made no distributions over that period, so its yield for the year was 0%. That fits the index's premise, which favors companies that aim to reward shareholders by reinvesting in their own growth, especially through research and development. Retirees who rely on portfolio income would need to draw it from other holdings or by cashing in RND shares.
What's the difference between RND and QGRW?
The biggest differences are cost and size. RND charges 0.60% a year; WisdomTree U.S. Quality Growth Fund (QGRW) charges 0.28%. QGRW held about $2.65 billion as of June 30, 2026, against RND's $4.8 million. About 59% of their holdings overlap, but RND's rules select stocks by R&D spending growth and R&D-to-sales ratio. Over the year to October 27, 2026, QGRW returned 12.3% and RND 7.8%. QGRW also has a three-year record; RND, launched in April 2024, does not.
How risky is the RND ETF?
It has moved more sharply than the broad market. Its one-year beta, a gauge of how much it moves with the market, was 1.29 as of October 27, 2026, meaning it tended to swing further. Its deepest drop was 23.5%, from January 23 to April 8, 2025, and its weakest quarter, ended March 31, 2026, lost 9.87%. The top 10 holdings were 58% of assets on June 30, 2026, with a heavy technology tilt. Its record began in April 2024, after the 2022 bear market.
What is RND's expense ratio?
RND's expense ratio, the yearly fee taken out of fund assets, is 0.60%, according to its prospectus filed July 29, 2026; all of it is the management fee. That is above the 0.53% average of eight funds with similar holdings, and only PGIM Jennison Focused Growth ETF (PJFG), at 0.75%, charges more. The cheapest of the group, WisdomTree U.S. Quality Growth Fund (QGRW), charges 0.28%. Portfolio turnover of 46% can add trading costs that the expense ratio doesn't show.