**NOBL: Is This S&P 500 Dividend Aristocrats ETF Dead Weight? (Rating Downgrade)**
*By The Sunday Investor | 6.96K Followers*
—
The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is the only ETF that tracks the S&P 500 Dividend Aristocrats Index. This index consists of S&P 500 companies that have increased their dividend payments for at least 25 consecutive years. While this strategy once garnered attention for its consistency, it is no longer as effective as it used to be.
In this article, I will demonstrate through a detailed factor analysis comparing NOBL to 25 other dividend ETFs across dividend yield, quality, growth, value, and risk factors that NOBL has essentially become a one-trick pony. Its design primarily benefits investors in flat or declining markets, limiting its potential in today’s dynamic market environment.
**Investment Thesis**
I last covered NOBL on August 28, 2024, where I argued that a 25-year streak of increasing dividends does not necessarily guarantee superior performance or resilience moving forward. This latest analysis confirms that relying solely on dividend aristocrats may not be the optimal approach for long-term growth or risk-adjusted returns.
Instead, I recommend investors adopt a multi-factor investment strategy that balances dividend yield with other key factors such as quality, growth, and value. To that end, I will suggest six long-term alternatives that, in my view, outperform NOBL across those dimensions.
Given this outlook, NOBL receives a **“sell” rating**.
—
**About The Sunday Investor**
The Sunday Investor is focused exclusively on U.S. Equity ETFs. With a strong analytical background, he has earned a Certificate of Advanced Investment Advice from the Canadian Securities Institute and completed all educational requirements for the Chartered Investment Manager designation.
Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a proprietary ETF Rankings system, which he shares on his website, [etf-rankings.com](https://etf-rankings.com). Nearly 1,000 ETFs are scored individually on costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment. These factors feed into an easy-to-understand composite score ranging from 1 to 10.
Happy investing!
—
**Analyst’s Disclosure**
I/we have a beneficial long position in the shares of SPY, SCHD, FDVV, either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
—
**Seeking Alpha’s Disclosure**
Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker, or U.S. investment adviser or investment bank. Our analysts are third-party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
—
**Comments**
*Recommended For You*
https://seekingalpha.com/article/4842832-nobl-is-this-s-and-p-500-dividend-aristocrats-etf-dead-weight?source=feed_all_articles
