ETF Trends | October 02, 2018
Despite rising interest rates, ETF Trends' Tom Lydon says dividend-focused ETFs have delivered steady returns in 2018, specifically in the small-cap space. Lydon suggests that the strength of the dollar, the rise in U.S. retail sales and consumer spending trends, and a weaker global economy are all factors “driving investors toward smaller company stocks.” For investors seeking a dividend growth strategy with small-cap exposure, he recommends ProShares Russell 2000 Dividend Growers ETF (SMDV). SMDV includes small-cap firms with consecutive dividend growth of at least 10 years, and has outperformed the Russell 2000 for the trailing three-year period, with “significantly less” volatility. See SMDV performance and holdings.
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