Investors may also consider consistent dividend growers as a way to gain exposure to this group of quality companies as dividend growers and high quality stocks share a number of similar characteristics.
Dividend growth as a means of trumping inflation could and arguably should serve to highlight the advantages of the ETFs that focus on dividend growth stocks. That group is comprised of well-established ETFs that emphasize dividend increase streaks as well as a new breed of funds that look for sectors chock full of stocks that have the potential to be future sources of dividend growth.
“The introduction of single factor ETFs underscores our commitment to providing choice for our clients and bringing the best and most innovative products to market,” Joanna Gallegos, U.S. Head of ETFs for J.P. Morgan Asset Management, said in a note. “While we offer a breadth of solutions, single-factor funds allow clients to be more granular in their approach and customize their portfolios to meet distinct outcomes.”
For more on Smart Beta ETFs, visit the Smart Beta Channel home page.