This Dividend ETF You Haven't Heard of Is Springing to Life

Experienced dividend investors whitethorn cognize astir the S&P 500 Dividend Aristocrats® index, which is simply a handbasket of S&P 500 member firms that person boosted payouts for a minimum of 25 consecutive years. That scale is accessible successful money form, meaning that income seekers tin efficiently pat into a handbasket of stocks with steadily rising payouts. (Dividend Aristocrats® is simply a registered trademark of Standard & Poor's Financial Services LLC.)

What galore dividend investors whitethorn not cognize is that aristocracy isn't confined to the large-cap S&P 500. Some mid-cap exchange-traded funds (ETFs) are dividend-dedicated, too, including the ProShares S&P MidCap 400 Dividend Aristocrats® ETF (NYSEMKT: REGL).

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

In quiescent fashion, which is par for the people successful the mid-cap universe, this ProShares ETF is going astir its business, beating the S&P MidCap 400 index by 200 ground points twelvemonth to date. That could beryllium the commencement of thing much substantial, indicating the money deserves much attention.

This $1.8 cardinal ETF turned 11 years aged earlier this month, truthful it's been astir the block. In presumption of however its income watercourse is sourced, it's astir a spot disconnected the aged artifact of its large-cap counterpart. The mid-cap money follows the S&P MidCap 400 Dividend Aristocrats® index.

Admittedly, the obstruction to introduction for that gauge is little than for the equivalent S&P 500 gauge, arsenic the Mid-Cap Aristocrats Index requires a minimum dividend-increase streak of 15 years. Regardless of market capitalization, that's a precocious hurdle for immoderate institution to clear, peculiarly erstwhile moving extracurricular the large-cap realm.

As a result, the ProShares ETF is location to conscionable 51 stocks, giving it an aura of exclusivity. The bully quality is the portfolio isn't heavy concentrated, arsenic the money employs an equal-weight methodology, ensuring nary idiosyncratic constituent exceeds 1.67%.

In summation to constricted single-stock hazard and the dividend stream, this ETF is suitable for semipermanent buy-and-hold investors due to the fact that mid-caps person historically outperformed some their larger and smaller peers portion being little volatile than small-cap stocks.

Given that it is simply a dividend maturation fund, investors should instrumentality a semipermanent presumption of this ETF. After all, allowing those payouts to compound implicit clip tin output affirmative outcomes for diligent marketplace participants. None of that diminishes the near- to medium-term entreaty of this fund.