“NOBL is not just high dividend-paying stocks, but dividend growers,” said Sachs. “Sustainability and ‘grow-ability’ is what sets NOBL apart.”
NOBL has the potential to be useful on multiple fronts. First, assume that the Fed raises rates, but those moves prove futile in combating inflation. Since the 1970s, dividend growth has easily thumped inflation. Second, while NOBL allocates just 3.4% of its weight to rate-sensitive telecom and utilities names, the ETF devotes nearly 31% of its combined weight to consumer discretionary and industrial stocks, two of the best-performing sectors in rising rate environments.
NOBL Sector Weights
Chart Courtesy: ProShares
ETF Trends editorial team contributed to this post.