“Companies that consistently grow their dividends tend to be high quality with long histories of profit and growth, strong fundamentals and stable earnings, and management teams with conviction. These features have generally enabled dividend growers to withstand repeated market turmoil and still deliver strong returns with lower volatility,” according to ProShares.
For example, the S&P MidCap 400 Dividend Aristocrats Index refines the mid-cap sweet spot by screening the benchmark S&P MidCap 400 for high-quality companies with at least 15 consecutive years of dividend growth and caps each sector at a maximum 30% to limit overexposure and equally weights holdings to ensure even greater diversification. Only 12% of the larger S&P mid-cap universe makes the cut and is included in the resulting portfolio of mid-cap dividend aristocrats.
REGL allocates nearly 30% of its weight to financial services stocks while the utilities and industrial sectors combine for over a third of the ETF’s weight.
REGL’s underlying index has a dividend yield of nearly 2.2%. The ETF’s annual fee is 0.4%, or $40 on a $10,000 investment.
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