A 19.2% weight to healthcare stocks is undoubtedly helping RZG this year. RZG’s healthcare holdings are spread across some of the industry’s hottest sub-sectors, including biotechnology, medical device manufacturers and services providers. Biotechnology and services providers have been fertile grounds for the raft of mergers and acquisitions activity.
Although its trailing 12-month yield is just 0.4%, RZG could become a dividend growth story over time.
Small-cap indexes remain at the low end of the dividend yield totem pole, more than half the members of the S&P SmallCap 600 are dividend payers and there is room for steady payout growth as “182 payers have a dividend rate less than 50% of their 12 month net GAAP income, with 235 being less than 75%,” according to S&P Dow Jones Indices.
Guggenheim S&P Smallcap 600 Pure Growth ETF
