ProShares, a premier provider of alternative ETFs, today launched two new ETFs, each investing in the best dividend growers of a major equity index.
ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) and ProShares Russell 2000 Dividend Growers ETF (SMDV) are the first ETFs to invest exclusively in the companies with the longest track records of year-over-year dividend growth in the S&P MidCap 400® Index and the Russell 2000® Index.
“Historically, stocks that grew dividends outperformed those that didn’t,” said Michael L. Sapir, co-founder and CEO of ProShare Advisors LLC. “We are pleased to offer investors the performance potential of a dividend growth strategy for a wide range of equity allocations.”
Over the past 28 years, U.S. equities that grew dividends year over year returned 13.9%, while those that paid them without growing them returned 10.1%, according to Ned Davis Research. The findings are based on an analysis of companies underlying the Russell 3000 Index, a measure of the broad U.S. equities market, from February 2, 1987 through December 31, 2014.
REGL and SMDV broaden ProShares’ Dividend Growers suite of ETFs, which includes ProShares S&P 500 Dividend Aristocrats ETF (NOBL), recently named ETF Product of the Year. NOBL received this distinction at the 2014 William F. Sharpe Indexing Achievement Awards for its impact on the ETF market over the previous 12 months. Launched just over a year ago, it has already surpassed $600 million in assets.
ProShares’ Dividend Growers suite includes the following funds, all of which are listed on NYSE Arca.
|S&P 500 Dividend Aristocrats ETF||NOBL||U.S. large cap|
|S&P MidCap 400 Dividend Aristocrats ETF||REGL||U.S. mid cap|
|Russell 2000 Dividend Growers ETF||SMDV||U.S. small cap|
|MSCI EAFE Dividend Growers ETF||EFAD||International large cap|
About the Indexes
The S&P MidCap 400 Dividend Aristocrats Index targets companies in the S&P MidCap 400 Index that have increased dividend payments every year for at least 15 consecutive years. The index contains a minimum of 40 stocks, which are equally weighted, rather than weighted by market capitalization. No single sector is allowed to compose more than 30% of the index’s weight.1 The index is rebalanced each January, April, July and October, with an annual reconstitution during the January rebalance.
The Russell 2000 Dividend Growth Index targets companies in the Russell 2000 Index that have increased dividend payments every year for at least 10 consecutive years. The index contains a minimum of 40 stocks, which are equally weighted, rather than weighted by market capitalization. No single sector is allowed to compose more than 30% of the index’s weight.1 The index is rebalanced in March, June, September and December, with an annual reconstitution during the June rebalance.
ProShares offers the nation's largest lineup of alternative ETFs. We help investors to go beyond the limitations of conventional investing and face today's market challenges. ProShares helps investors build better portfolios by providing access to alternative investments delivered with the liquidity, transparency and cost effectiveness of ETFs. Our wide array of alternative ETFs can help you reduce volatility, manage risk and enhance returns.
1 If fewer than 40 stocks meet criteria, the index may include companies with shorter dividend growth histories.
Best dividend growers are defined as companies that have the longest track records of consecutive dividend growth.
ProShares has the largest lineup of alternative ETFs in the United States, according to Strategic Insight, based on analysis of all the known alternative ETF providers (as defined by Strategic Insight) by their number of funds and assets (as of 1/31/2014).
There is no guarantee dividends will continue to be paid. Companies may reduce or eliminate dividends at any time, and those that do will be dropped from the index at reconstitution.
Investing involves risk, including the possible loss of principal. These ProShares ETFs entail certain risks, including imperfect benchmark correlation and market price variance, that may decrease performance. Investments in smaller companies typically exhibit higher volatility. Smaller company stocks also may trade a greater spreads or lower trading volumes, and may be less liquid than stocks of larger companies. Please see summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. Obtain them from your financial advisor or broker/dealer representative, or visit ProShares.com.
The "S&P MidCap 400® Dividend Aristocrats® Index” is a product of S&P Dow Jones Indices LLC and its affiliates and has been licensed for use by ProShares. "S&P®" is a registered trademark of Standard & Poor's Financial Services LLC ("S&P") and "Dow Jones®" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. The "Russell 2000® Dividend Growth Index" and "Russell®" are trademarks of Russell Investment Group ("Russell") and have been licensed for use by ProShares. ProShares have not been passed on by these entities and their affiliates as to their legality or suitability. ProShares based on these indexes are not sponsored, endorsed, sold or promoted by these entities and their affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor.