“Companies with high ROEs and ROAs have the flexibility to invest in available growth opportunities, improve the infrastructure of the business and reward shareholders with dividend growth and share buybacks,” reports ETF Daily News. “Moreover, these companies can potentially shield investors from market downturns due to their demonstrated ability to maximize returns through various economic cycles.”

Related: Are Smart Beta ETF Strategies Growing Too Big?

DGRW, which turned four in May, has over $1.7 billion in assets under management and a distribution yield of 1.61%. While that is lower than the dividend yield on the S&P 500 and lower than the yield on 10-year Treasuries, it implies DGRW member firms have ample room for dividend growth going forward.

The ETF allocates nearly 21% of its weight to technology stocks, one of the largest technology allocations among all dividend ETFs. Healthcare and industrial names combine for over 39% of the ETF’s roster while the two consumer sectors combine for over 30%. DGRW is up 12% year-to-date.

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Tom Lydon’s clients own shares of DGRW.