At a glance
SDVD charges 0.85% a year, above the 0.55% average of the 4 funds most like it (the most expensive of 5). It has $909.6M in assets, the 3rd largest of that group; it paid 9.88% of its price in distributions over the past 12 months, monthly. Over the past year it returned +14.4% with distributions reinvested (S&P 500: +11.5%), 2nd of those 5 funds; over three years it returned +18.9% a year. Its ten largest positions make up 10.6% of the fund, out of 173 in all.
The short version
FT Vest SMID Rising Dividend Achievers Target Income ETF (SDVD) holds small- and mid-sized US companies that keep raising their dividends. It picks them from the Nasdaq US Small-Mid Cap Rising Dividend Achievers Index and sells call options on the Russell 2000 for extra income. Its trailing yield was 9.88% as of October 27, 2026, paid monthly. It costs 0.85% a year, compared with 0.59% for SDVY, a sister fund that holds the same kind of stocks without options.
Price history
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SDVD +14.4% 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 | |
|---|---|---|---|---|---|---|
| SDVD official prospectus, to Dec 31, 2025 | — | +8.78% | — | — | — | +12.45% |
| SDVD price data to Oct 27, 2026 | +11.5% | +14.4% | +18.9% | — | — | +13.6% |
- Over the year to Oct 27, 2026, SDVD returned +14.4%, 2nd of 5 among similar funds.
- Its worst full calendar year was 2025 (+9.5%); its best was 2024 (+11.8%).
- The deepest fall in its price history was 24.1% (Nov 25, 2024 to Apr 8, 2025), recovered by Dec 10, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.5% | — |
| 2025 | +9.5% | +8.78% |
| 2024 | +11.8% | +11.06% |
| 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
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.7400 | |
| 2025 | $1.9600 | -2.0% |
| 2024 | $2.0000 |
What's inside
As of Jul 31, 2026, the fund held 173 securities; the ten largest made up 10.64% of assets.
| Holding | Weight | |
|---|---|---|
| NATIONAL HEALTHCARE CORP | 1.25% | |
| PRICESMART INC | 1.15% | |
| FIRST BANCORP (PUERTO RICO) | 1.07% | |
| COMFORT SYSTEMS USA INC | 1.07% | |
| CLEAR SECURE INC | 1.04% | |
| INTERPARFUMS INC | 1.04% | |
| HANOVER INSURANCE GROUP INC (THE) | 1.03% | |
| ENERSYS | 1.00% | |
| INTERACTIVE BROKERS GROUP INC | 1.00% | |
| OFG BANCORP | 1.00% | |
| APPLIED INDUSTRIAL TECHNOLOGIES INC | 1.00% | |
| PRIMERICA INC | 0.98% | |
| UMB FINANCIAL CORP | 0.98% | |
| ASSURANT INC | 0.97% | |
| ZIONS BANCORP NA | 0.97% |
By country
United States 94.2%Puerto Rico 2.07%Bermuda 1.99%Ireland 1.02%Bahamas 0.46%By asset type
Stocks 99.74%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $57.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -2.77%, +4.67%, +2.14%.
How it works
First Trust runs the fund, with Vest Financial as sub-advisor. The portfolio managers pick stocks from the Nasdaq US Small-Mid Cap Rising Dividend Achievers Index. That index tracks companies that have raised their dividends over the past three and five years. It screens on dividend growth, dividend yield and payout ratio (the share of profits paid out as dividends). The managers decide which index stocks to own and how much of each. The fund held 173 stocks as of July 31, 2026. Portfolio turnover of 122% in its latest reported year means it trades often.
The fund also sells (writes) call options on the Russell 2000 Index or on ETFs that track it. The buyer pays the fund a premium for the right to any gain above a set price, called the strike. The options are typically at-the-money, meaning the strike sits near the index's present level, and they expire in under 30 days. Each week, the fund compares its dividend income with its payout target and uses option premiums to fill the gap. The target is about 8 percentage points above the Russell 2000's dividend yield, before fees.
If the Russell 2000 ends above the strike, the fund owes the difference and may sell stocks to pay it. The options are on a different index from the stocks the fund owns. So the fund can owe money on the options even when its own holdings are lagging.
What it really costs
- SDVD charges 0.85% a year, versus an average of 0.55% for the similar funds below (5th of 5, cheapest first).
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
Its main goal is a high monthly payout from dividends plus option premiums, with growth as a secondary goal.
SDVD could add a large monthly cash stream. Its trailing yield was 9.88% as of October 27, 2026. The fund launched in August 2023, so it has no record from the 2008, 2020 or 2022 sell-offs. Its deepest drop was 24.1%, from November 2024 to April 2025. It took about eight months to recover, by December 2025. Anyone who sold shares to cover spending during that stretch would have locked in losses. Its weaker calendar year, 2025, still returned 8.78%, but the fund has only two full years of history. The payout is a target, not a promise. Option income is usually taxed as ordinary income. The 0.85% expense ratio is above the 0.55% average of similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts from small- and mid-cap dividend growers, with a trailing yield of 9.88% as of October 27, 2026.
- Investors holding it in tax-advantaged accounts like IRAs, where option income taxed as ordinary income matters less.
- Long-term holders willing to give up some gains in strong small-cap rallies in exchange for steady option premiums.
Look elsewhere if
- Cost-conscious investors: the 0.85% fee compares with 0.59% for SDVY, whose holdings overlap 96% with SDVD's but which sells no options.
- Investors who want the full growth of smaller stocks, because at-the-money calls give away Russell 2000 gains above the strike price.
- Anyone who wants a long track record: launched in August 2023, it has no history through the 2008, 2020 or 2022 sell-offs.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SDVD this fund | — | 0.85% | $909.6M | +14.4% | +18.9% |
| SDVY First Trust SMID Cap Rising Dividend Achiev… · different strategy | 96% | 0.59% | $11.35B | +12.2% | +18.5% |
| FSCS First Trust SMID Capital Strength ETF · different strategy | 31% | 0.6% | $58.9M | +3.7% | — |
| AFMC First Trust Active Factor Mid Cap ETF · different strategy | 21% | 0.65% | $211.5M | +20.0% | +23.3% |
| DON WisdomTree U.S. MidCap Dividend Fund · different strategy | 20% | 0.38% | $3.96B | +12.2% | +16.5% |
Questions investors ask
Does SDVD pay monthly dividends?
Yes. SDVD aims to pay every month, using dividends from its stocks and premiums from selling call options. In the 12 months to October 27, 2026, it paid $2.19 a share, a trailing yield of 9.88%. Before fees, it targets a rate about 8 percentage points above the Russell 2000's dividend yield. The prospectus says there is no guarantee it will hit that target, and payouts can exceed the fund's actual income.
What's the difference between SDVD and SDVY?
The main difference is that SDVD sells call options for extra income and SDVY does not. Both are First Trust funds built on the same rising-dividend index, and their holdings overlapped by 96%. SDVD costs 0.85% a year against SDVY's 0.59%. As of October 27, 2026, SDVD returned 14.4% over one year and 18.9% a year over three years. SDVY returned 12.2% and 18.5%. SDVY is much larger, at about $11.4 billion as of June 30, 2026.
Is SDVD good for retirement income?
It can provide high monthly income, but with trade-offs. The trailing yield was 9.88% as of October 27, 2026, paid from dividends and option premiums. The fund charges 0.85% a year. Its option income is usually taxed as ordinary income, and selling calls gives up some gains in strong rallies. It also fell 24.1% between November 2024 and April 2025, then recovered by December 2025. It may suit income-focused investors who can ride out drops like that.
How are SDVD distributions taxed?
Much of the payout is likely taxed as ordinary income. Option premiums generally don't get the lower tax rate on qualified dividends, so in a taxable account a large share may be taxed like wages. The fund also handles some creations and redemptions in cash. The prospectus says this may make it less tax-efficient than ETFs that work only in-kind. If payouts exceed the fund's income and gains, part may count as a return of capital.
What stocks does SDVD hold?
SDVD owns about 173 small- and mid-cap dividend stocks, nearly all in the US, with small amounts in each. As of July 31, 2026, the largest were National HealthCare (1.2%), PriceSmart (1.2%), First BanCorp of Puerto Rico (1.1%) and Comfort Systems USA (1.1%). The top 10 made up just 10.6% of assets. Banks and insurers such as Hanover Insurance, UMB Financial and Zions Bancorp show up often among the largest holdings. The fund also has a short position in a Russell 2000 call option.