This Dividend ETF You Haven't Heard of Is Springing to Life

Core Viewpoint - Mid-cap stocks, particularly those in the ProShares S&P MidCap 400 Dividend Aristocrats ETF, are gaining attention as they outperform larger peers and offer a reliable income stream for investors [1][4]. Group 1: ETF Overview - The ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) has outperformed the S&P MidCap 400 index by 200 basis points year to date [4]. - This ETF, with a market capitalization of $1.8 billion, has been operational for 11 years and follows the S&P MidCap 400 Dividend Aristocrats index [5]. - The Mid-Cap Aristocrats Index requires a minimum dividend increase streak of 15 years, which is lower than the S&P 500 equivalent [6]. Group 2: Portfolio Characteristics - The ETF consists of 51 stocks, employing an equal-weight methodology to ensure no single stock exceeds 1.67% of the portfolio [7]. - The ETF is designed for long-term buy-and-hold investors, as mid-cap stocks have historically outperformed both large-cap and small-cap stocks while exhibiting lower volatility than small-cap stocks [9]. Group 3: Economic Resilience - The ETF's holdings generate over 80% of their sales in the U.S., making it potentially more resilient to domestic economic fluctuations and geopolitical unrest compared to larger, export-driven companies [11]. - Companies that raise dividends during economic downturns signal confidence in their business and growth potential, which is a positive indicator for investors [12].