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The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is an ETF that follows the performance of elite companies that have been steadily increasing their dividends for the last consecutive years.
In this blog post, we’ll break down what NOBL ETF is, what makes it special, and the potential benefits and risks of investing in it.
Table of Contents
What is (NOBL)?
ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is designed to track the performance of the S&P 500 Dividend Aristocrats Index, which includes companies that have consistently increased their dividends for at least 25 consecutive years. The fund is considered to be a reliable indicator of a company’s financial health and stability. By investing in the NOBL ETF, investors gain access to a diversified portfolio of companies that have a proven track record of paying dividends and have demonstrated their ability to increase dividends year after year. This type of investment strategy is known as a Smart Beta ETF.
Smart Beta ETFs are investment funds that use alternative methods to traditional market-capitalization weighing. Smart Beta ETFs often use factors such as dividends and volatility to determine their holdings, whereas traditional index funds rely solely on market capitalization. ProShares NOBL is considered a smart beta ETF because it uses a proprietary index based on dividend growth as the basis for its holdings and weighs them based on the performance of that index.
What Is Special About (NOBL)?
NOBL is a passive ETF that tracks the S&P 500 Dividend Aristocrats Index. The fund pays out dividends every quarter and has $2.9 billion in assets under management (AUM). NOBL has returned over 10% over the past 12 months and has been able to outperform its benchmark by an average of 0.5%.
The fund charges investors a 0.35% expense ratio, which may sound expensive compared to other funds’ expense ratios but isn’t too bad considering it’s a passive fund designed for long-term investors who are willing to pay more for higher returns over time. Additionally, the ETF is managed passively, which means that it aims to track the performance of the underlying index rather than trying to outperform it through active management.
Another benefit of investing in the NOBL ETF is that it provides investors with exposure to a wide range of sectors, including consumer staples, healthcare, and industrials. This diversification helps to reduce the overall risk of the portfolio by spreading investments across different industries and companies.
The NOBL ETF is known for its low expense ratio and passive management, which makes it an appealing option for investors who are looking for a low-cost, diversified investment strategy. You can use it as an alternative to Vanguard High Dividend Yield Index Fund Investor Shares VHDYX or iShares Select Dividend Index Fund DVYIX if you want exposure to high-yield stocks but don’t want to pay higher expenses than necessary for this type of investment strategy.
If you’re looking to invest in ProShares S&P 500 Dividend Aristocrats ETF (NOBL), eToro is an excellent choice. As one of the best online brokers available, eToro offers a reliable and user-friendly platform with a variety of options for both beginner and professional traders. In this mini guide, we will walk you through the process of opening an account on eToro and investing in NOBL.
Step 1: Open your Personal Account
To begin, you’ll need to create an account on eToro. Head to their homepage and click on the “Sign Up” or “Join Now” button. This will take you to the registration page where you will need to provide some basic information, such as your name, email address, and a password. After completing the registration form, you’ll receive a confirmation email. Click the link in the email to verify your account.
Step 2: Upload ID
Next, you’ll need to verify your identity by uploading a government-issued ID or passport. To do this, log in to your eToro account and navigate to the verification section, where you’ll be prompted to upload a clear photo or scanned copy of your ID or passport. This is a necessary step for security purposes and to comply with international regulations.
Step 3: Make a Deposit
Once your identity has been verified, you’ll need to fund your account. To do this, log in to your eToro account and click on the “Deposit Funds” button, which is usually located at the bottom left corner of the platform. You’ll then need to choose a payment method, such as a credit card, bank transfer, or an e-wallet like PayPal or Skrill. Follow the prompts to complete the deposit process.
Step 4: Search for NOBL
Now that your account is funded, you can search for ProShares S&P 500 Dividend Aristocrats ETF (NOBL) on the eToro platform. In the search bar at the top of the page, type “NOBL” or “ProShares S&P 500 Dividend Aristocrats ETF” and click on the result to view the ETF’s details, performance, and other relevant information.
Finally, you’re ready to invest in NOBL. From the stock’s detail page on the eToro platform, click the “Trade” button to open a new order window. Here, you can set the amount you want to invest, choose whether to apply leverage (if available), and set any stop loss or take profit orders. Once you’re satisfied with your order, click the “Open Trade” button to execute the transaction.
And that’s it! You’ve now successfully opened an account on eToro and invested in ProShares S&P 500 Dividend Aristocrats ETF (NOBL). Remember to monitor your investment and make adjustments as needed based on your financial goals and risk tolerance.
Should You Buy/Sell NOBL Now?
It’s difficult to say whether ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is a good buy/sell without knowing an individual’s personal investment strategy and goals. For investors who want exposure to dividend-paying, large-cap US stocks and don’t mind some volatility in their portfolios; this fund can be an effective tool for building wealth over time.
However, like any other investment, the NOBL ETF has its own risks. For example, the fund has heavy exposure to the US market, and its returns may be affected by changes in the domestic economy and politics. Additionally, the dividends paid out by the underlying companies may fluctuate, and there is a risk of fluctuations in the value of the underlying assets.
It’s essential to consider your personal investment strategy, risk tolerance, and financial situation before making any investment decisions. It would be a good idea to consult with a financial advisor before making any investment decisions.
NOBL ETFs Historical Performance
NOBL has been a solid performer, delivering returns that have been in line with the broader market. Since 2013, the fund has returned an annualized total return of 12.47%. In converse, during the same period, the S&P 500 index returned an annualized total return of 12.26%.
Overall, the fund’s performance has been relatively consistent over time, with minimal differences from the market index. Even during periods of market volatility and uncertainty, the fund still delivered a return of 14.88% as compared to the S&P 500 index return of 16.26%. In essence, The fund is very stave with average returns.
Also, It’s worth noting that the fund charges a slightly higher expense ratio than some of its peers, which may impact its overall returns.ProShares S&P 500 Dividend Aristocrats ETF is better suited for risk-averse investors who are seeking slow and steady profits over time.
What Investors Should Consider Before Buying or Selling (NOBL)?
Investing in NOBL provides diversification because it includes both large-cap and mid-cap stocks within its holdings. However, investors should have a clear understanding of the potential risks of any investment product before investing. Some of the most important things to consider when evaluating an ETF include:
- What is the track record of this fund? How long has it been around and what kind of performance has it delivered over time?
- What types of securities does this fund invest in? Is it safe or risky? Can you expect steady growth or will your money be at risk if things go south for one or more companies within its holdings.
You should also think about whether or not your portfolio needs diversification through exposure to different industries or sectors, which may help mitigate risk from changes in overall market conditions such as rising interest rates and inflationary pressures.
Risks Of Investing in NOBL
Investing in the stock market always carries some risk, and ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is no exception. Here are some key risks to consider when investing in NOBL:
Like most investments, the value of NOBL can be impacted by market-wide events and conditions. Economic downturns, global events, and changes in interest rates can all affect the price of your investment.
NOBL invests in the stocks of companies that have a history of paying dividends, but there is always the risk that a company may fail to meet its financial obligations. In such cases, the value of your investment could decline.
NOBL is an exchange-traded fund (ETF), which means it is bought and sold on the stock market. However, there may be instances when there is limited trading activity, making it difficult to sell your investment when you want to.
The value of your investment in NOBL can be impacted by changes in the underlying stocks that the ETF holds. If the stocks become overvalued, the value of your investment may decline even if the underlying companies continue to perform well.
Final Note
The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) offers investors an opportunity to gain exposure to a carefully selected group of high quality. By focusing on these resilient and established businesses, NOBL offers a degree of downside protection during market downturns, while still participating in the growth potential of the broader equity market.
FAQs
How do I buy/sell NOBL?
To purchase Proshares NOBL, you must first set up an account with a broker. Interactive Brokers is one option, but you can also use TD Ameritrade.
What is the dividend yield of NOBL?
Proshares NOBL seeks to track the performance of the S&P 500 Index by attempting to provide twice-daily returns that correspond with the index. It does not pay dividends as traditional stocks do; instead, its returns come from trading on the stock market.
What is the expense ratio of NOBL?
The expense ratio for ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is 0.35%. This annual fee covers the fund’s operating expenses. The expense ratio can reduce returns for investors, so it is important to consider when evaluating a potential investment.
WeInvests is a financial portal-based research agency. We do our utmost best to offer reliable and unbiased information about crypto, finance, trading and stocks. However, we do not offer financial advice and users should always carry out their own research.
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