Is The NOBL Dividend Aristocrats ETF A Good Investment?

Most income investors dislike the S&P 500’s low dividend yield. But still want to be well-diversified.

The ProShares S&P 500 Dividend Aristocrats ETF ($NOBL) bridges this gap.

NOBL is an index fund comprised entirely of dividend aristocrats — companies which have paid and raised their dividends for at least 25 consecutive years.

Today’s article examines the NOBL fund’s performance, and whether or not it is a good investment.

What Is The ProShares S&P 500 Dividend Aristocrats ETF?

As mentioned in the beginning, the ProShares S&P 500 Dividend Aristocrats ETF is an index fund of companies which have all paid growing dividends for the past 25 consecutive years.

Dividend-focused index funds are nothing new, but NOBL does have a few features that make it unique.

NOBL is equally weighted. Which means that it holds the same amount of every stock. This is very different from a traditional S&P 500 ETF, where a small handful of companies comprise most of the fund.

As you can see from Seeking Alpha, each NOBL position makes up about 1.6–1.7% of the total holdings: