Siren DIVCON Leaders Dividend ETF

LEAD

Market cap $62.4M

LEAD is comprised of dividend-paying U.S. stocks with a high likelihood of increasing their dividend payments, as determined by a proprietary system. However, LEAD holds mostly low-yielding stocks, making it a unique offering that's best compared with broad-based funds like SPY. Its expected yield is only 0.77%. Using SPY as a comparator, LEAD's total returns were about 34% less since its January 2016 launch. With low-single-digit dividend growth rates, I don't see the appeal.

Dividend growth outperforms the market over time and helps portfolios beat inflation. These dividend growth ETFs give investors the chance to buy the strategy at low cost.

U.S. inflation jumped in March, surpassing expectations primarily due to higher petrol and shelter costs, dashing hopes of a June interest rate cut by the Fed.

U.S. inflation remained sticky this year, which means that the Fed may go slow in cutting interest rates this year. Investors may play these ETF strategies to ride out the current edgy investing scenario.

Dividend growth investing allows for versatility in portfolio construction and strategies. Tax considerations, such as the difference between taxable accounts and IRAs, add complexity to investing decisions. I discuss my approach to dividend investing in my Roth IRA and taxable accounts, emphasizing long-term dividend growth in one and maximizing current and future income in the other.

While the S&P 500 has recorded an incredible rally lately, topping the 5,000-mark, there are valid reasons to approach the current situation with caution.