ProShares S&P 500 Dividend Aristocrats ETF

NOBL

Market cap $11.4B

If you want to protect your portfolio and generate passive income, consider yielding exchange-traded funds (ETFs).

Dividend Aristocrats, tracked by NOBL, outperformed SPY in August but lagged year-to-date, with notable dispersion among individual stock returns. Dividend growth remains robust, with 55 of 69 Aristocrats already raising payouts in 2025 at an average rate of 5.19%, nearing last year's pace. 22 Dividend Aristocrats appear both undervalued and offer a projected long-term annualized return of at least 10%, based on dividend yield theory and earnings growth.

I am upgrading NOBL to a "Buy," driven by falling Treasury yields and the potential for renewed interest in dividend growth stocks. NOBL offers a 2.03% yield, solid fundamentals, and a track record of dividend growth, despite recent underperformance versus the S&P 500. Valuation remains a concern, but sector headwinds may ease as lower rates favor defensive, high-quality dividend payers like those in NOBL.

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) was launched on 10/09/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.

Dividend Aristocrats have shown mixed 2025 performance, with some delivering double-digit gains and others lagging, but overall stability remains a hallmark. Dividend growth is robust, with 53 of 69 Aristocrats raising payouts in 2025 and an average growth rate of 5.14%, signaling continued income reliability. My 'Promising Aristocrats' list, focused on undervaluation and projected total return, has outperformed both NOBL and SPY in August.

On Wednesday, ProShares launched the ProShares Ultra S&P 500 Equal Weight ETF (URSP), the latest fund to join its growing collection.  Following a waiver, URSP operates with a net expense ratio of 95 basis points.

NOBL and DGRW both provide exposure to a variety of high-quality dividend growers.

Weaker July jobs data and sharp revisions fuel rate cut bets and shine a light on five defensive ETFs like QQLV.

Almost all of my net worth is tied to my dividend investment strategy. Yet, at the same time, I fully realize that dividend investing is suboptimal (at least for some). In the article, I discuss the key disadvantages that come from devising an income-biased strategy.

Dividend growth ETFs like SCHD offer reliable, growing income, but tend to underperform indexes, due to low technology exposure. Covered call ETFs, such as GPIQ, provide higher yields by writing options, offering immediate income, but capping price appreciation. GPIQ stands out for its dynamic option strategy and Nasdaq-100 exposure, delivering a 10% yield and consistent payouts.