##  [# First Trust’s New Equity Income ETF Begins Trading ](/sections/daily-etf-watch/first-trusts-new-equity-income-etf-begins-trading) 

 

# First Trust’s New Equity Income ETF Begins Trading 

 

 

 The dividend equity fund launched as market hits rough waters.



 

 

 

 

 [![ShubhamSaharan_white_bg](/sites/default/files/styles/author_image_icon/public/2023-03/Shubham2.png?itok=cXdHa411)](/contributors/shubham-saharan) 

[By Shubham Saharan](/contributors/shubham-saharan)

 Oct 21, 2022

 Edited by: Shubham Saharan

 

 

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First Trust Portfolios, home to 196 exchange-traded funds, is bringing its dividend plus options strategy to the equity market with the [Cboe Vest Rising Dividend Achievers Target Income ETF (RDVI)](https://www.sec.gov/Archives/edgar/data/1517936/000144554622006937/rdvi_497k.htm).

The fund began trading Oct. 20 on the Cboe, according to a statement from Wheaton, Illinois-based First Trust, which manages $33.6 billion, according to ETF.com data. The actively managed fund charges an expense ratio of 0.75%. The price jumped more than 1% during midday trading hours to $19.87 as a little over 1,000 shares were traded, according to Yahoo Finance data.

The launch comes at a troubling time for U.S. ETFs and equity markets, with the S&amp;P 500 plummeting more than 22% year to date and the Nasdaq losing 32%. The U.S. ETF market [contracted sharply](https://www.etf.com/sections/features-and-news/etf-market-battered-market-woes-cfra) last month: Total assets dropped by $520 billion to $5.91 trillion, according to a CFRA Research note.

RVDI’s closest peers, the [**Amplify CWP Enhanced Dividend Income ETF (DIVO)**](https://www.etf.com/DIVO) and the [**JPMorgan Equity Premium Income ETF (JEPI)**](https://www.etf.com/JEPI#overview), have both fallen nearly 10% year to date, according to ETF.com data.

The new fund uses a proprietary target income strategy created by Cboe Vest Financial. It will invest in U.S.-based equities within the Nasdaq US Rising Dividend Achievers Index and sell call options on the S&amp;P 500 Index or ETFs that track the S&amp;P 500 Index.

“Investors are, more than ever, challenged to find quality sources of income without increasing risk in their portfolios,” Cboe Vest President Jeff Chang said in a statement. He said RDVI aims to offer investors access to “an alternative form of consistent income.”

*Contact Shubham Saharan at [*shubham.saharan@etf.com*](mailto:shubham.saharan@etf.com)

*\[**Editor's Note:** An earlier version of this article incorrectly stated "securities" when referring to call options.\]*



 

 

 [ Shubham Saharan ](/contributors/shubham-saharan) 

 

 

  Shubham Saharan is a markets reporter at etf.com. Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a…   [View Bio](/contributors/shubham-saharan)

 



 

 


 Related Topics  [Dividend](http://www.etf.com/topics/dividend) 

 [Equity](http://www.etf.com/topics/equity) 

 [Active Management](http://www.etf.com/topics/active-management)