Could Investing $2,000 in the S&P 500 Dividend Aristocrats ETF Make You a Millionaire?

With rising geopolitical tensions, large monetary argumentation shifts, slowing economical growth, an overvalued banal market, a choppy occupation market, and elevated inflation, these are uncertain times for investors. It has lowered investors' appetite for hazard and accrued their tendency for safer investments, peculiarly dividend stocks and ETFs.

Dividend ETFs mostly put successful stocks of large, unchangeable companies that tin beryllium relied connected to nutrient accordant income and coagulated returns done astir marketplace environments.

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There whitethorn beryllium nary much unchangeable dividend ETF than the ProShares S&P 500 Dividend Aristocrats ETF (NYSEMKT: NOBL). It's each close determination successful the sanction -- it invests successful large-cap stocks that person accrued their dividends for astatine slightest 25 years successful a row, oregon more. It doesn't get overmuch much unchangeable than that.

It tin surely supply dependable dividend income, but tin it marque you a millionaire astatine retirement?

The ProShares S&P 500 Dividend Aristocrats ETF is the lone 1 that invests solely successful the Dividend Aristocrats® (the word Dividend Aristocrats is simply a registered trademark of Standard & Poor’s Financial Services LLC). As of Feb. 1, the ETF held astir 69 stocks, each of which had accrued their dividend for astatine slightest 25 years successful a row. The mean consecutive years of dividend maturation were 43 years.

The ETF is equal-weighted, meaning each 69 of the stocks person astir the aforesaid value successful the portfolio. Some of the longest dividend payers see Coca-Cola astatine 63 years, Target astatine 54 years, and S&P Global astatine 52 years -- each Dividend Kings, oregon companies that person raised their dividends for 50 years oregon more.

This ETF is specifically designed for investors who are looking to equilibrium retired their portfolio with an all-weather, risk-averse money that beats the marketplace during hard periods. For example, the NOBL ETF has an 8% full instrumentality twelvemonth to day with the dividend reinvested, compared to the S&P 500 (SNPINDEX: ^GSPC), which is fundamentally level YTD.

Its longer-term returns, however, autumn abbreviated of the large-cap benchmark. Over the past 5 years, NOBL has had an mean annualized full instrumentality of 9.1% compared to 14.4% for the S&P 500. Over the past 10 years, NOBL has had an mean full instrumentality of 10.6% compared to 15.1% for the S&P 500.

An concern successful the ProShares S&P 500 Dividend Aristocrats ETF is astute successful immoderate marketplace due to the fact that it adds needed equilibrium and stableness to a portfolio. And successful a volatile market, it becomes adjacent much valuable.