
SMDV: A DividendâFocused SmallâCap ETF That Adds Up
âĒBy ADMIN
Related Stocks:SMDV
Hereâs a closer look at the SMDVâŊETF (ProShares RussellâŊ2000 Dividend Growers): rather than chasing megaâcaps with long dividend histories, it targets smaller U.S. companies that have boosted dividends for at least 10âŊstraight years.
What makes it stand out? It uses an equalâweighted approach instead of a marketâcap heavy lineup, and imposes sector caps (no sector makes up more than ~30âŊ% of the fund) to avoid concentration risk.
On the flip side: this smallâcap dividend niche means higher volatility and it has underâperformed largeâcap dividend ETFs and the broader market recently.
Bottom line: If youâre seeking income plus growth and are comfortable with the swings of smaller companies, SMDV may be a worthy addition for diversification beyond the usual dividend bigâcaps.
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