Bank on the Buyback Binge With This ETF

2026-03-03 10:20:00 ET

The primary avenues through which companies deliver shareholder rewards are dividends and buybacks. Investors looking to tap into themes with exchange-traded funds (ETFs) have an extensive list of dividend-focused funds to consider.

For some reason, that's not the case with buybacks, as that corner of the ETF world is sparsely populated. Arguably, it's an interesting phenomenon when considering that by some estimates, 2025 marked the fifth straight year in which S&P 500 companies spent more on share repurchases than they did on cash payouts. One estimate indicates the 2025 tally was $1 trillion in buybacks, compared to $750 billion in dividends.

This ETF is home to companies that are really reducing share counts via buybacks. Image source: Getty Images.

Continue reading