The VictoryShares Dividend Accelerator ETF earns a solid 'hold' rating due to its strong dividend growth and earnings risk features. This article demonstrates why it's superior to NOBL and SDY. In addition to better total returns, VSDA has excellent from a risk-adjusted returns and drawdowns perspective, with its ten-year net income stability as the likely source. However, VSDA is overweight Consumer Staples (33%) and underweight Technology (3%), which leads to concerns about its underlying holdings' earnings growth and momentum statistics.
VictoryShares Dividend Accelerator ETF markets itself as a dividend growth ETF, but the underlying holdings show little to no earnings growth. Many of the ETF's top stocks face stagnating or negative earnings growth trends and increasing dividend payout ratios. VSDA's monthly payouts may mask weak fundamentals and declining dividend safety, but I'm not buying it.
VictoryShares Dividend Accelerator ETF boasts a 23% 5-year dividend growth rate and 17% CAGR, with uninterrupted growth since inception, making it a standout for investors seeking high-growth dividend ETFs. Since its inception, VSDA has rivaled the total returns of SCHD and DGRO, while its rising yield, enhancing the appeal for dividend-focused investors. With low overlap with SCHD and DGRO and a unique screening methodology, VSDA's focus on early-stage dividend growers, which adds diversification and alpha potential to dividend growth focused portfolios.
| NASDAQ (NMS) Exchange | US Country |
The fund aims to fulfill its investment objective by primarily allocating at least 80% of its assets into securities that are part of the Nasdaq Victory Dividend Accelerator Index. This investment approach focuses on selecting dividend-paying stocks that are probable to experience growth in their future dividend payouts. By adhering to a rules-based methodology, the fund seeks to invest in companies demonstrating potential for sustained dividend increases, which might be attractive to investors looking for income-generating investments with the prospect for capital appreciation.
This product centers on investing in securities included in the Nasdaq Victory Dividend Accelerator Index. The index is carefully designed to track dividend-paying stocks with an increased likelihood of future dividend growth. By utilizing a strategic, rules-based approach, the fund identifies and invests in companies across various sectors that are not only paying dividends but are also positioned for potential dividend increases. This service is tailored for investors seeking exposure to dividend growth as part of their investment strategy.