Launched on 10/09/2013, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Proshares. NOBL has been able to amass assets over $11.52 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the S&P 500 DividendAristocrats Index before fees and expenses.
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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.35% for NOBL, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.07%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 23.5% of the portfolio, the fund has heaviest allocation to the Consumer Staples sector; Industrials and Financials round out the top three.
When you look at individual holdings, Nucor Corp (NUE) accounts for about 1.79% of the fund's total assets, followed by Jm Smucker Co/the (SJM) and West Pharmaceutical Services (WST).
The top 10 holdings account for about 14.95% of total assets under management.
Performance and Risk
Year-to-date, the ProShares S&P 500 Dividend Aristocrats ETF has gained about 9.31% so far, and is up about 12.48% over the last 12 months (as of 07/22/2026). NOBL has traded between $50.40 $57.71 in this past 52-week period.
The fund has a beta of 0.75 and standard deviation of 12.56% for the trailing three-year period, which makes NOBL a medium risk choice in this particular space. With about 70 holdings, it effectively diversifies company-specific risk .
Alternatives
ProShares S&P 500 Dividend Aristocrats ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) tracks NASDAQ US Dividend Achievers Select Index. iShares Core Dividend Growth ETF has $42.02 billion in assets, Vanguard Dividend Appreciation Index Fund ETF Shares has $110.27 billion. DGRO has an expense ratio of 0.08% and VIG changes 0.04%.
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
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ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).