First Trust SMID Rising Dividend Achievers UCITS ETF Acc

Issuer: First Trust

Asset Class: Equity

TER: 60bps

Trading Currency: GBX

Pays Income: False

Listing Date: 10 Apr 2024

Ticker: SMID

ISIN: IE0001R850E1

This actively managed fund offers focused exposure to U.S. small- and mid-capitalization (SMID) companies that demonstrate a consistent ability to grow their dividends. The investment strategy centers on identifying businesses with strong financial health, stable earnings, and durable competitive advantages that enable them to not only pay but consistently increase their dividend distributions over time. This approach blends quality and growth factor investing, as a track record of rising dividends is often indicative of a well-managed company with a disciplined approach to capital allocation and the capacity to generate sustainable free cash flow. The portfolio manager actively selects securities, moving beyond simple index replication to build a concentrated portfolio of what they believe are high-conviction ideas within the SMID universe.

This product can serve as a strategic or satellite holding for investors looking to enhance the growth potential and income stream of their portfolios. The SMID-cap segment historically offers a different risk-return profile compared to large-caps, often providing greater potential for capital appreciation. The fund's specific focus on dividend growth aims to deliver a rising income stream, which can be particularly attractive in various market environments and for investors focused on total return. By emphasizing companies that are reinvesting in their business while also rewarding shareholders, the strategy seeks to capture both capital gains and compounding income, making it a suitable option for long-term, growth-oriented investors.