Moreover, NOBL’s underlying index includes a quarterly rebalancing scheme that equally weights components.
“The quarterly reweighting feature will add a bit of value into the mix (by way of regularly upping allocations to stocks that have performed relatively poorly) and may throttle momentum (paring back allocations to names that have performed relatively well),” Johnson added.
Related: High-Yield Dividend ETFs Come with a Price
However, Johnson pointed out that NOBL is a little more pricey, compared to its competitors. NOBL comes with a 0.35% expense ratio, the average cost for other exchange traded products in the large-value, -blend and -growth Morningstar categories.
However, it is more expensive than something like the Vanguard Dividend Appreciation ETF (NYSEArca: VIG), which tracks U.S. stocks that have increased dividends on a regular basis for at least 10 consecutive years and comes with a 0.09% expense ratio. The Schwab US Dividend Equity ETF (NYSEArca: SCHD), which includes 100 stocks based on strong fundamentals, dividend yields and consistent dividend payouts for at least 10 consecutive year, has an even cheaper 0.07% expense ratio.
Click here to read the full story on ETF Trends.