Getting Paid to Reduce Small-Cap Volatility | Page 2 of 2 | ETF Trends

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The weighted average market value of SMDV’s 61 holdings is $2.24 billion. The fund allocates 20.60% of its weight to utilities stocks. Industrial and financial services stocks combine for almost 29% of SMDV’s weight.

Dividend growth can be a sign of health balance sheets, a prized quality among small-cap stocks.

“Periods of higher market volatility tend to reinforce the value of finding higher quality companies that continually grow their dividends, particularly in the US small cap asset class as they tend to perform better in times of stress,” said ProShares Senior Investment Strategist Kieran Kirwan. “These companies tend to have stronger balance sheets, more consistent earnings, and resilient business models.”

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