On that note, DGRO is predictably heavy on industrial and consumer staples goods stocks combine for almost 35% of the ETF’s weight, according to issuer data. However, the new ETF allocates just over 18.4% of its combined weight to the technology and financial services sectors, two groups that have been the leading dividend growers in the S&P 500 over the past several years. [Tech ETFs Turn Into Dividend Destinations]
While different dividend growth ETFs deliver on that concept in different, two things are certain. First, over long-term time frames, dividend growers outperform stocks that do not raise or do not pay dividends. Second, dividend growth stocks have proven adept at helping portfolios beat inflation. [Inflation Fighting With Dividend Growth ETFs]
DGRO Sector Weights
Chart Courtesy: iShares
ETF Trends editorial team contributed to this article.