Richmond Trims SDVY Stake: A Gonzo Investor’s Take

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IN THE SHADOWS OF WALL STREET’S GLITTERING TOWERS, WHERE EVERY TICK OF THE STOCK MARKET IS A HEARTBEAT OF GREED, RICHMOND INVESTMENT SERVICES DECIDED TO SLASH ITS STAKE IN THE FIRST TRUST SMID CAP RISING DIVIDEND ACHIEVERS ETF (SDVY). THIS WASN’T A TINY CUT-THIS WAS A FULL-ON BLOODLETTING, A $6.31 MILLION LANCE TO THE FUND’S GUT. AS IF THE MARKET ITSELF WERE A DRUG-ADDLED FREAK SHOW, RICHMOND SELLING 206,264 SHARES, REDUCING ITS HOLDING TO 354,450 SHARES VALUED AT $13.5 MILLION AS OF SEPTEMBER 30, 2025. AUM? IT’S NOW A MEAGER 2.5% FROM 4.2%-A SLUMP THAT FEELS LIKE WATCHING A FRIEND GET BURIED IN A LANDFILL OF BAD DECISIONS.

WHAT HAPPENED

THE SEC FILING ON NOVEMBER 12, 2025, IS A DOCUMENT OF HUMAN FRAILTY. RICHMOND, THAT COLD, CALCULATING MACHINE OF CAPITAL, SOLD ITS WAY OUT OF SDVY, LEAVING IT AS THE TENTH-LARGEST HOLDING IN ITS PORTFOLIO. THE TOP FIVE? A LIST OF FUNDAMENTALIST FANTASIES: IWL, SPYM, MOAT, QQQ, AND VNLA-ALL DANCING TO THE SAME S&P 500 DRUM. BUT HERE’S THE KICKER: SDVY IS NOW 1% BELOW ITS 52-WEEK HIGH, A SLUMP THAT FEELS LIKE A MUGSHOT OF DISAPPOINTMENT.

WHAT ELSE TO KNOW

THE FUND’S METRICS ARE A MELTDOWN OF MATH: $9.25 BILLION IN AUM, A 1.34% DIVIDEND YIELD, AND A 1-YEAR PRICE CHANGE OF -1%. IT’S THE STOCK MARKET’S VERSION OF A BORED TEENAGER, WAITING FOR A DRUG-FUELED ADVENTURE THAT NEVER COMES. THE ETF TRACKS 100 SMALL-AND MID-CAP COMPANIES WITH “CONSISTENT AND RISING DIVIDENDS.” CONGRATULATIONS, YOU’VE JUST INVESTED IN A GROUP OF GROWN-UPS WHO CAN’T EVEN BUY A CAR WITHOUT A LOAN.

ETF OVERVIEW

A TABLE OF DEATH, THIS IS. AUM: $9.25 BILLION. DIVIDEND YIELD: 1.34%. PRICE: $38.41. 1-YEAR CHANGE: -1%. IT’S THE STOCK MARKET’S VERSION OF A BORED TEENAGER, WAITING FOR A DRUG-FUELED ADVENTURE THAT NEVER COMES. THE ETF TRACKS 100 SMALL-AND MID-CAP COMPANIES WITH “CONSISTENT AND RISING DIVIDENDS.” CONGRATULATIONS, YOU’VE JUST INVESTED IN A GROUP OF GROWN-UPS WHO CAN’T EVEN BUY A CAR WITHOUT A LOAN.

ETF SNAPSHOT

SDVY IS A FUND THAT CLAIMS TO OFFER “TARGETED EXPOSURE” TO SMALL-AND MID-CAP STOCKS. BUT LET’S BE HONEST, THIS IS JUST A SLOGAN FOR “WE’RE GOING TO BURY YOU IN DIVERSIFICATION.” THE FUND’S RULES-BASED APPROACH IS A JOKER IN A GAME OF POKER, AND ITS DIVIDEND YIELD IS A SLIGHTLY HIGHER THAN A BORING TALK SHOW HOST. BUT HERE’S THE TRUTH: THE EXPENSE RATIO OF 0.59% IS A SLAP IN THE FACE FOR INVESTORS WHO WANTED TO SEE A REAL RETURN.

FOOLISH TAKE

RICHMOND, THAT PARANOIC SPECTER OF CAPITALISM, SAW A CHANCE TO TACTICALLY RETREAT. AFTER A 10% RISE OVER SIX MONTHS, IT’S TIME TO TAKE PROFITS, EVEN IF THE REST OF THE MARKET IS STILL DREAMING OF THE MAGNIFICENT SEVEN. THE S&P 500’S 203% RETURN VS. SDVY’S 121% IS A COMPARISON BETWEEN A ROCKETSHIP AND A BICYCLE. BUT LET’S NOT FORGET: SDVY’S P/E RATIO IS 16, A VALUE INVESTOR’S DREAM. YET, ITS EXPENSE RATIO IS A SABER-TOOTHED TIGER HUNTING YOUR RETURNS. I’D RATHER PICK MY OWN STOCKS, BUT IF YOU’RE LOOKING FOR A ONE-STOP SHOP, SDVY IS A SICKLY BUT STABLE OPTION.

GLOSSARY

13F REPORTABLE AUM: THE AMOUNT OF MONEY A FIRM MANAGES THAT IT MUST SHOUT TO THE SEC, LIKE A DRUNK IN A CHURCH. AUM: THE TOTAL VALUE OF INVESTMENTS A FIRM HOLDS, LIKE A BOSSY PARENT COUNTING THEIR KIDS’ ALLOWANCES. ETF: A FUND THAT TRADERS BUY AND SELL LIKE IT’S THE LAST CIGARETTE IN A CRUMBSY CIGAR STORE. DIVIDEND YIELD: HOW MUCH CASH A FUND PAYS OUT COMPARED TO ITS PRICE-A CHEAP WAY TO FEEL RICH. CAPITAL APPRECIATION: WHEN YOUR INVESTMENT GROWS, BUT ONLY IF YOU’RE LUCKY ENOUGH TO BE AWARE OF IT. DIVIDEND GROWTH: A FUND’S ABILITY TO INCREASE PAYMENTS, LIKE A KID WHO GROWS TALL BUT NEVER LEARNS TO SHAVE. INDEX CONSTITUENTS: THE STOCKS THAT MAKE UP A FUND, LIKE A BAND OF FRENCH FRIES IN A BURGER. RULES-BASED APPROACH: A STRATEGY THAT FOLLOWS A SCRIPT, LIKE A BAD PLAYWRITER. SMID CAP: A CATEGORY OF COMPANIES THAT ARE SMALLER THAN THE BIG GUYS BUT BIGGER THAN A STREET VENDOR. 52-WEEK HIGH: THE HIGHEST PRICE A STOCK EVER REACHES-A HYPOTHETICAL MOMENT OF GLORY. TOP HOLDINGS: THE BIGGEST INVESTMENTS IN A FUND, LIKE THE MOST LOUD KIDS IN A CLASSROOM.

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2025-12-09 23:36