What NOBL actually is
NOBL is the ETF that follows the S&P 500 Dividend Aristocrats: companies in the S&P 500 that have consistently increased their dividends each year for at least 25 years. It invests at least 80% of its assets in the index components or in instruments with similar economic characteristics.
It launched in 2013 and is one of the simplest ways to own the whole group of Aristocrats in one fund. Learn more about them on our Dividend Aristocrats page.
What is inside
Holdings come from many sectors, with consumer staples, industrials, healthcare and materials well represented, and less in technology. The index weights its members more evenly than a market-cap fund would, so smaller companies in the list matter more than in the S&P 500 itself.
Distributions
NOBL pays out the dividends of its holdings regularly. Its yield is usually moderate, because Aristocrats are valued for reliability rather than for very high payouts. Check the fund’s current yield, fees and distribution schedule on the issuer’s website, because they change.
What to keep in mind
- A streak is not a guarantee. Companies that cut or freeze dividends are removed.
- Sector tilt. Fewer technology and growth companies than the whole market.
- More even weighting. This can help and hurt compared with market-cap funds.
- Trading venue. It trades on Cboe rather than NYSE Arca, which matters little for most investors.
Quick take
NOBL gives you the Dividend Aristocrats in one fund. It suits investors who value a long record of dividend increases and are comfortable with a value and defensive tilt.