Investors should consider how markets have historically behaved after an incumbent president wins or loses and whether it varies by the winner’s party, along with the ways party control of Congress (or the lack of it) may affect the markets’ sectors and market caps.
In the upcoming webcast, Investing After the Election: What Experts See for the Road Ahead, Ed Clissold, Chief U.S. Strategist, Ned Davis Research; Simeon Hyman, Global Investment Strategist, ProShares; and Kieran Kirwan, Director, Investment Strategy, ProShares, will discuss what may lie ahead for markets and will provide an update of the dividend landscape and an overview of dividend growth strategies, which have exhibited strong performance characteristics under a wide range of market conditions.
For example, the ProShares S&P 500 Aristocrats ETF (NOBL), which tracks the S&P 500 Dividend Aristocrats Index, is ProShares’ flagship dividend growth ETF strategy that targets the cream of the crop, only selecting components that have increased their dividends for at least 25 consecutive years. Consequently, investors are left with a portfolio of high-quality, sustainable dividend payers as opposed to more high-yield focused funds that may contain companies in more precarious financial positions.
ProShares also offers dividend growth ETFs that focus on other market segments, like the ProShares Russell 2000 Dividend Growers ETF (SMDV) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) for those seeking quality dividend growers in the small- and mid-cap categories, respectively. The mid-cap Dividend Aristocrats Index only requires 15 consecutive years of increased dividends for inclusion. SMDV, a dividend spin on the Russell 2000, the benchmark U.S. small-cap index, tracks the Russell 2000 Dividend Growth Index, which includes small-cap firms with dividend increase streaks of at least a decade.
Investors can diversify into international markets while tracking similar dividend growth strategies. For instance, the ProShares MSCI EAFE Dividend Growers ETF (EFAD) tracks developed market Europe, Australasia, and Far East companies that exhibit a minimum dividend increase streak of 10 years.
The ProShares MSCI Europe Dividend Growers ETF (EUDV) tracks the performance of the MSCI Europe Dividend Masters Index, which consists of at least 25 European companies that have consistently increased their dividends for at least ten consecutive years.
The ProShares MSCI Emerging Markets Dividend Growers ETF (EMDV) follows the MSCI Emerging Markets Dividend Masters Index, which targets MSCI Emerging Market components that have increased dividend payments each year for at least seven consecutive years.
Finally, ProShares recently added to its burgeoning lineup of dividend growth ETFs with the launches of two new funds – the ProShares Russell U.S. Dividend Growers ETF (TMDV) and the ProShares S&P Technology Dividend Aristocrats ETF (TDV).
Financial advisors who are interested in a market outlook post-election can register for the Tuesday, November 10 webcast here.