VSDA - VSDA: This Dividend Growth ETF Beats NOBL But What About VIG?

2023-05-14 20:49:28 ET

Summary

• VSDA selects 75 stocks with excellent dividend growth track records. Monthly payments accelerate dividend growth and it's a suitable alternative to the ProShares S&P 500 Dividend Aristocrats ETF.
• VSDA's 3Y and 5Y dividend growth rates are 21% and 14%. The 1.90% trailing dividend yield isn't enticing today, but the future yield on cost should be substantial.
• This article details VSDA's selection process and compares its fundamentals with NOBL and VIG. While VSDA appears an excellent alternative to NOBL, it doesn't match up as well with VIG.
• The primary reason is lower growth and profitability rates, indicating VSDA might not perform as well in a market downturn.
• Still, VSDA is a fairly well-designed fund flying under the radar. A 0.35% expense ratio and low trading volume may limit AUM growth moving forward, but VSDA's returns since inception are impressive.

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