In June, the Dividend Aristocrat Index (NOBL) rallied 1.20%, lagging the S&P 500, which returned +1.99%. Of this 79bp negative performance differential 135bp, or closer to 2x the differential, was driven by the strategy's underweight to Information Technology. The Dividend Aristocrats produced a -9.7% return in the first half of 2020, its worst first half performance since 2008, lagging the S&P 500 by 6.5%.
Historically, the Dividend Aristocrats have been a defensive strategy, outperforming in at least the last six down years for the market. This outperformance in down years has contributed to