ProShares added to its burgeoning lineup of dividend growth ETFs Thursday with the launches of two funds – the ProShares Russell U.S. Dividend Growers ETF (CBOE: TMDV) and the ProShares S&P Technology Dividend Aristocrats ETF (CBOE: TDV).
The new ETFs will look to build on the success of other members of the ProShares dividend growers suite, including the ProShares S&P 500 Aristocrats ETF (CBOE: NOBL), ProShares Russell 2000 Dividend Growers ETF (CBOE: SMDV) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (CBOE: REGL).
“With eight ETFs—including its flagship fund NOBL—and over $7 billion in assets under management as of 11/6/19, ProShares’ dividend growth ETF lineup is the largest of any ETF provider,” said Maryland-based ProShares in a statement. “The expansion of the lineup reflects ProShares’ belief in the value of dividend growth strategies for long-term investors.”
ProShares other dividend growth ETFs include the ProShares MSCI Europe Dividend Growers ETF (CBOE: EUDV), ProShares MSCI Emerging Markets Dividend Growers ETF (CBOE: EMDV) and the ProShares MSCI EAFE Dividend Growers ETF (CBOE: EFAD).
Inside The New ETFs
The ProShares Russell U.S. Dividend Growers ETF is unique among dividend growth ETFs currently on the market. That new ETF tracks the Russell 3000 Dividend Elite Index, which requires member firms to have minimum dividend increase streaks of at least 35 years.
Prior to TMDV’s debut, the ETF with the longest dividend increase streak requirement among domestic equity funds was the aforementioned NOBL. NOBL tracks the S&P 500 Dividend Aristocrats Index, targets the cream of the crop, only selecting components that have increased their dividends for at least 25 consecutive years.
“Consistent dividend growth may be one of the best indicators of a company’s health,” said Michael Sapir, co-founder, and CEO of ProShare Advisors, LLC, the advisor to ProShares. “We are committed to offering this powerful strategy across a broad array of market caps, geographies, and sectors.”
Related: ProShares Adds Pair of New ETFs to its Dividend Growth Suite
TMDV allocates nearly 40% of its combined weight to the consumer staples and industrial sectors.
TDV, the new tech dividend ETF, is the second fund of its kind, but the first with an explicit dividend increase streak mandate. That new ProShares fund follows the S&P Technology Dividend Aristocrats, which requires member firms to have payout increase streaks of at least seven years.
Top holdings in that new include Microsoft (NASDAQ: MSFT) and Qualcomm (NASDAQ: QCOM), among others.
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