NOBL's reputation as a safe, reliable dividend ETF is overrated, offering little true risk management during market downturns. The lack of tech exposure has caused NOBL to significantly underperform the S&P 500, Nasdaq, and even the Dow Jones in recent years. Dividend growth and yield have not compensated for price declines or underperformance, especially since the Fed began raising rates; those rates may stay longer than we like, impacting NOBL.
Launched on 10/09/2013, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
The ProShares S&P 500 Dividend Aristocrats ETF is poised to outperform in a market downturn due to its focus on stable high-quality companies. NOBL's strategy of including companies with 25+ years of consecutive dividend increases makes it resilient in volatile markets. NOBL has started to outperform the S&P 500 and NASDAQ year-to-date, signaling a potential trend shift.
Bet on defensive and high-earnings growth sectors in this tumultuous April.
The ProShares S&P 500 Dividend Aristocrat ETF provides exposure to highly established firms with solid financial profiles.
The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) was launched on 10/09/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
Consumer Staples, Real Estate, and Health Care sectors are at YTD highs, with XLP producing alpha amid broader market volatility. NOBL has returned 4% YTD, outperforming SPY's 1.4%, but I maintain a hold rating due to premium valuation and mixed technical signals. NOBL's high P/E ratio and low EPS growth rate result in a high PEG ratio, indicating a need for tempered enthusiasm.
Dividend aristocrats are popular names among income investors because of their long track record of growing their income and the fact that most of them are blue-chip names with a commanding market share in their industries.
Launched on 10/09/2013, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
NOBL ETF tracks the S&P 500 Dividend Aristocrats Index, offering a 2.03% dividend yield and over 8% 5-year CAGR, with a competitive 0.35% expense ratio. Despite a lower dividend yield compared to peers, NOBL appears as a liquid and balanced choice. Before 2020, Dividend Aristocrats offered a better risk-reward ratio, lower volatility, and a 29% P/E discount compared to the S&P 500.
Dividend investing has evolved; traditional approaches may no longer yield high returns due to market changes and algorithmic trading. NOBL's 2% yield is unattractive compared to alternatives, and its equal weighting doesn't mitigate the low yield issue. Quality dividend stocks are still valuable, but investors must be tactical and flexible in portfolio management.
ProShares S&P 500 Dividend Aristocrats ETF tracks the S&P 500 Dividend Aristocrats Index which consists of stocks on the S&P 500 that have had a history of consecutively raising dividend payments annually for 25+ years. While tracking this index sounds like an interesting idea, the approach is flawed because it excludes many high-quality companies with much higher dividend growth rates. NOBL has underperformed its competitors by more than 30% in the last ten years without offering significantly higher yields or lower volatility.