Unlike other dividend-paying stock ETFs, DON weights components based on the total dollar amount of dividends paid as opposed to others that weight components based on yield percentage. Weighting by dividends can help investors avoid financially strained companies with high yields.

The value tilt has also historically proven to provide a source of outperformance. Since 1927, mid-value stocks have outperformed the market by about 3 percentage points per year, according to data from the French Data Library.

The mid-caps segment has also outperformed their large-cap peers, but with lower volatility than small caps. Moreover, the returns of mid-cap stocks have also beaten those of small-cap stocks during the trailing three-, five-, and 10-year periods, with lower volatility.

“The expense ratio right now is .38%. There are some great funds in the market with a materially lower ratio, but there are also funds with one that just makes you walk away. DON lies somewhere in the middle,” notes Seeking Alpha.

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