Looking for Top ETFs? Here's One to Consider Now.

• This ETF has been a person successful its class for a decade.

• It taps into 2 things investors love: dividends and tech stocks.

• Its screening process tin assistance investors debar dividend duds.

• 10 stocks we similar amended than First Trust Rising Dividend Achievers ETF ›

Investors buying for apical exchange-traded funds (ETFs) can't beryllium blamed if they're focusing connected funds holding equities associated with artificial quality (AI) and technology. After all, those person been market-leading segments for an extended period.

Still, investors shouldn't get sidetracked. In the quest to place immoderate of the apical ETFs to bargain today, the First Trust Rising Dividend Achievers ETF (NASDAQ: RDVY) merits consideration. This ETF, which turns 12 years aged adjacent month, could beryllium a potent summation to a wide assortment of portfolios, but earlier diving in, investors should analyse the fund's plumbing.

Home to $18.21 cardinal successful assets nether absorption (AUM) arsenic of Dec. 1, First Trust Rising Dividend Achievers ETF is among the apical 10 successful presumption of size successful the dividend ETF category. More important is this ETF's long-running way grounds of outperforming peers, often by sizable margins.

Knowing however First Trust Rising Dividend Achievers ETF generated that stellar tally is important due to the fact that portion past show isn't a warrant of aboriginal returns, a fund's methodology tin springiness investors a consciousness of what to expect. In the lawsuit of this dividend ETF, it focuses connected 4 superior pillars.

First, subordinate firms indispensable person paid a dividend implicit the trailing 12 months that is "greater than the dividend paid successful the trailing twelve-month play 3 and 5 years prior." Second, companies eligible for inclusion indispensable person affirmative net implicit the past year, and those profits indispensable transcend those notched successful the anterior 3 fiscal years.

Other mandates see prospective holdings indispensable person cash-to-debt ratios of astatine slightest 50% and they can't person trailing 12-month payout ratios successful excess of 65%. For immoderate dividend-paying companies, those are precocious hurdles to clear, but adhering to those guidelines helps this ETF present a prime portfolio portion steering investors distant from output traps.

The extremity merchandise is thing galore investors whitethorn presumption arsenic enticing, arsenic this ETF allocates astir 27% of its roster to tech stocks. It's not communal for dividend ETFs to diagnostic Alphabet and Nvidia among their apical six holdings, but this ETF breaks from the battalion and it's worked retired good for investors, helping marque this money 1 worthy looking into.