ProShares, the largest issuer of inverse and leveraged ETFs, has been expanding its suite of non-leveraged products and that lineup could grow larger with the possible introduction of a dividend ETF. The Maryland-based ETF issuer has filed plans with the U.S. Securities and Exchange to possibly introduce the ProShares S&P 500 Aristocrats ETF.
The filing does not include a ticker or expense ratio for the new fund, indicating a launch date is not imminent. The ETF will track the S&P 500 Dividend Aristocrats Index, which must contain a minimum of 40 companies that have raised their dividends for at least 25 consecutive years, according to the filing. No single sector is allowed to account for more than 30% of the index’s weight.
That strategy is similar to that used by the highly popular SPDR S&P Dividend ETF (NYSEArca: SDY). With $12.6 billion in assets under management, SDY is one of the largest dividend ETFs on the market. SDY tracks the S&P High Yield Dividend Aristocrats Index, which also a 25-year dividend increase requirement. [Dividend ETF Focuses on Steady Payers]
Should it come to market, the ProShares payout fund will rebalance in in January, April, July and October and hold both domestic and international stocks. SDY holds only U.S. stocks.
Some of ProShares non-leveraged ETFs include the ProShares Global Listed Private Equity ETF (NYSEArca: PEX) and the ProShares High Yield—Interest Rate Hedged (NYSEArca: HYHG).
ProShares High Yield – Interest Rate Hedged
ETF Trends editorial team contributed to this post.