On July 9, Amplify ETFs launched the Amplify S&P 500 Dividend Driver ETF (DRVR), with an expense ratio of 39 basis points. The fund tracks the S&P 500 Dividend Drivers Index, providing exposure to S&P 500 companies with a proven track record of dividend growth.
Key Takeaways
- Amplify ETFs introduced the Amplify S&P 500 Dividend Driver ETF (DRVR) on July 9, carrying an expense ratio of 39 basis points and tracking the S&P 500 Dividend Drivers Index.
- DRVR selects S&P 500 companies with a minimum 10-year track record of increasing dividends that are also forecasted to continue growth. They’re also ranked by a composite score that considers metrics such as five-year dividend growth, forecasted growth, and ROIC.
- While many dividend-growth funds exist on the market, their structures vary significantly. This makes ita crucial for investors to understand the methodology behind each strategy.
Defining the DRVR Approach
The fund targets companies within the S&P 500 index that have increased their dividends per share every calendar year over the past ten years and are forecasted to continue increasing dividends the following year, based on data from S&P Global Market Intelligence. Qualifying companies are then ranked using a single composite score that incorporates five-year dividend growth, forecasted growth, and return on invested capital (ROIC).
Companies that have historically delivered consistent dividend growth often demonstrate strong earnings power, disciplined capital allocation, and durable business models, according to an Amplify ETFs press release.
Combining dividend growth, forward-looking expectations, and diversification controls, DRVR serves as a durable core equity income allocation. This can prove durable across a variety of different market environments. Currently, the fund maintains heavy allocations to the industrial and financial sectors.
Performance Divergence Among U.S. Dividend-Growth ETFs
The launch of DRVR adds to a rapidly expanding U.S. market of dividend-growth focused ETFs. While these products have generally delivered strong returns in 2026, there is a noticeable performance gap between funds as a result of differences in underlying sector allocations.
The Franklin U.S. Dividend Booster Index ETF (XUDV) tracks the VettaFi New Frontier US Dividend Select Index, seeking to provide investors with enhanced dividend income. Rather than using a simple screener to identify highest-yielding stocks, the fund uses an optimization process, balancing high income against volatility and concentration risk. XUDV has achieved a 21.5% return year-to-date, with top holdings concentrated in financials and consumer non-durables.
For investors seeking actively managed exposure to dividend growth, the WisdomTree US Quality Dividend Growth Fund (DGRW) targets large-cap dividend-paying companies with strong growth and high profitability, with a heavy tilt toward technology firms.
Instead of selecting holdings based on historical yields alone, the fund emphasizes quality factors, such as return on equity (ROE) and forward-looking earnings growth. DGRW has delivered a 7.9% return in 2026, slightly lagging behind broad market indexes such as the VettaFi US Equity Large-Cap 500 Index, which has climbed 10.1% over the same period.
See more: ETF of the Week: DGRW
The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks the S&P 500 Dividend Aristocrats Index. Its equal-weight strategy targets durable S&P 500 companies that have increased dividend payments for at least 25 consecutive years. The fund has returned 9.64% this year with heavy allocations in the consumer non-durables and financials sectors.
Evaluating Your Dividend Strategy
While dividend growth funds have generally performed well in 2026, the returns vary widely among funds. This underscores the fact that these products are not one size fits all. Investors should carefully look into the methodology behind each product, as slight structural variations can drastically alter returns over time.
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VettaFi LLC (“VettaFi”) is the index provider for XUDV, for which it receives an index licensing fee. However, XUDV is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of XUDV.
