KNGZ: Is First Trust's New Dividend Aristocrats ETF Better Than NOBL?

Summary

• KNGZ recently reorganized to become a Defensive Dividend Aristocrat ETF. The ETF mains to mirror the sector exposures of the S&P 500 Index, and is expected to yield 3.00%.
• This article evaluates whether this new strategy is good enough to take on NOBL, the leading Dividend Aristocrat ETF with nearly $12 billion in assets under management.
• Though NOBL has its fair share of faults, they're minor compared to KNGZ. KNGZ has weaker dividend consistency and safety scores, no EPS growth, and a high 0.50% expense ratio.
• I expect NOBL to carry on, continuing to attract conservative investors with long time horizons and modest income needs. On the other hand, KNGZ is not competitive, and I can't see the ETF surviving for long.

highdog

Investment Thesis

The First Trust S&P 500 Diversified Dividend Aristocrats ETF (NASDAQ:KNGZ) changed investment strategies on October 3, 2023, and now focuses on large-cap stocks with at least 15 consecutive years of stable or increasing dividend payments. However, this screen is

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