ProShares S&P 500 Dividend Aristocrats ETF

NOBL

Market cap $5.56B

The ETF landscape includes a wide variety of innovative, intriguing funds that look to meet investor goals. From equities to fixed income, all kinds of strategies offer intriguing spins on areas like income and dividends.

The pitch for the FT Vest S&P 500 Dividend Aristocrats Target Income ETF (NYSEARCA:KNG) lands cleanly in retirement conversations.

Few market watchers would have predicted how much volatility markets would have seen at the start of this year. Close Fed observers, for example, were likely expecting a potential new Fed chair to consider cutting rates.

I am upgrading the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) to Buy, viewing it as a compelling large-cap alternative despite recent underperformance. NOBL offers attractive sector exposure, low concentration, zero Magnificent 7 holdings, and a forward PE of 17.4x median, 19.8x average. My base case sees NOBL rising 8% if Tech weakens, with downside protection in bearish scenarios due to Consumer Staples overweight.

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

Dividend investing is a continual, cyclical process requiring active monitoring and regular portfolio maintenance to ensure sustained performance. Relying solely on historical dividend growth or set-and-forget strategies exposes investors to risks from inflation, market volatility, and company-specific downturns. Dividend growth must consistently outpace inflation.

BETHESDA, Md.--(BUSINESS WIRE)--ProShares, a premier provider of ETFs, announced today forward and reverse share splits on 17 of its ETFs.

I reiterate a 'Buy' rating on the ProShares S&P 500 Dividend Aristocrats ETF despite recent underperformance vs. the S&P 500. NOBL offers a high-quality, value-tilted portfolio of U.S. dividend growers, with a 2.1% yield and moderate 35bps expense ratio. Valuation stands at 18.4x P/E, about 2.5 points below the S&P 500, though the PEG ratio above 2 signals no deep-value opportunity.

The ProShares S&P 500 Dividend Aristocrat ETF (NOBL) underperformed SPY in March and is lagging again in April, with wide dispersion among individual Aristocrats. Dividend growth among Aristocrats remains modest in 2026, with a current average increase of 3.49%, up slightly from last month's 3.40%. 33 Dividend Aristocrats are identified as potentially undervalued, each offering an estimated long-term annualized return of at least 10%.

The Vanguard International High Dividend Yield ETF has delivered a 10.9% annualized return in the past 10 years. The ProShares S&P 500 Dividend Aristocrats ETF has underperformed it and charges a higher expense ratio.