Dividend Growth ETF Loses 1.5 Trillion Won in One Day

On the 16th, the U.S. dividend-growth ETF FIRST TRUST RISING DIVIDEND ACHIEVERS (RDVY) plunged 5.76% on the Nasdaq, closing at $69.24. In a single day, its market capitalization shrank by about $1.1 billion (roughly ₩1.5 trillion), and trading volume exceeded 1.04 million shares.

Recent reports indicate a sharp rise in the ETF’s short interest, and it was also dropped from the First Trust Income Model Portfolio managed by Nasdaq Dorsey Wright, signaling growing short-term supply-demand pressure. Although RDVY has ranked among the top-performing dividend ETFs over the past decade, analysts now say it has entered a correction phase amid elevated share-price valuations.

RDVY is First Trust’s flagship dividend-growth ETF. It tracks the Nasdaq US Rising Dividend Achievers Index, investing in over 50 large-cap U.S. dividend payers that have consistently increased their distributions. With assets under management of about $20 billion (approximately ₩28 trillion), its recent dividend yield stands near 1%, classifying it as a fund that places greater emphasis on capital gains.