A smart beta exchange traded fund, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) debuted on 10/09/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Proshares. It has amassed assets over $11.09 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, NOBL seeks to match the performance of the S&P 500 DividendAristocrats Index.
The S&P 500 Dividend Aristocrats Index targets companies that are currently members of the S&P 500, have increased dividend payments each year for at least 25 years & meet certain market capitalization & liquidity requirements.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for NOBL are 0.35%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.11%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
NOBL's heaviest allocation is in the Industrials sector, which is about 22.7% of the portfolio. Its Consumer Staples and Financials round out the top three.
Looking at individual holdings, Abbvie Inc (ABBV) accounts for about 1.8% of total assets, followed by C.h. Robinson Worldwide Inc (CHRW) and Caterpillar Inc (CAT).
NOBL's top 10 holdings account for about 15.38% of its total assets under management.
Performance and Risk
The ETF has added roughly 3.97% so far this year and is down about -1.71% in the last one year (as of 11/10/2025). In the past 52-week period, it has traded between $90.85 and $108.47
NOBL has a beta of 0.85 and standard deviation of 13.37% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 70 holdings, it effectively diversifies company-specific risk .
Alternatives
ProShares S&P 500 Dividend Aristocrats ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. iShares Core Dividend Growth ETF has $34.4 billion in assets, Vanguard Dividend Appreciation ETF has $97.93 billion. DGRO has an expense ratio of 0.08% and VIG changes 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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