The ETF landscape includes a wide variety of innovative, intriguing funds that look to meet investor goals. From equities to fixed income, all kinds of strategies offer intriguing spins on areas like income and dividends. For example, ProShares has its suite of Dividend Aristocrat funds that lean on dividends to inform investing decisions. Specifically, those strategies invest in companies that have consistently increased dividends over decades. ProShares leaders answered some questions about the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) and the ProShares S&P Technology Dividend Aristocrats ETF (TDV) in a recent Q&A.
See more: Look to NOBL’s Growing Dividends in Volatile Rate Environment
What role do the funds play in a portfolio?
Dividend growth strategies can play multiple roles in a portfolio, including as a core equity allocation for domestic large-, mid-, small-cap & international, as a sector strategy (TDV), as a defensive oriented equity strategy — lower volatility, drawdowns as a component of an equity-income allocation, as a factor strategy — i.e. a means to invest in high quality stocks, and as a retirement income strategy — distributions generally grow at attractive rates over time.
Are investors looking for income or total returns when using Dividend Growth strategies?
ProShares’ Dividend Growth strategies have delivered attractive levels of total returns relative to their “parent” indexes over time (i.e. NOBL relative to the S&P 500). The strategies typically weather market turbulence by capturing most of the upside when markets are rallying, with less of the downside when markets are declining.
