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Invest in High-Quality Companies With Buyback & Dividend ETFs

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  • (0:45) - Why Should Investors Care About Share Buybacks?
  • (5:35) - ProShares S&P 500 Buyback Aristocrats ETF: BUYB
  • (11:00) - ProShares S&P 500 Dividend Aristocrats ETF: NOBL
  • (15:30) - Breaking Down The Current Market Valuations
  • (21:10) - ProShares S&P Technology Dividend Aristocrats ETF: TDV
  • (27:20) - ProShares Nasdaq-100 Dorsey Wright Momentum ETF: QQQA
  • (31:00) - Episode Roundup: WDC, STX
  • Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Kieran Kirwan, Director, Investment Strategy at ProShares, about buyback, dividend growth, and momentum strategies.

American companies are buying back their shares at a record pace. S&P 500 companies announced plans to buy back $665 billion worth of shares in the four months through April, the most ever to start a year, according to Bloomberg.

Earlier this month, Apple (AAPL - Free Report) announced a new $110 billion buyback program. And last week, NVIDIA (NVDA - Free Report) announced an $80 billion share buyback plan.

Share repurchases are down sharply for the rest of the Magnificent Seven this year, as these companies are spending heavily on their AI buildout.

The ProShares S&P 500 Buyback Aristocrats ETF (BUYB - Free Report) is the first and only ETF focused exclusively on companies with a consistent history of share buybacks. According to academic research, this strategy has historically tended to outperform other companies.

Dividend-paying stocks have been out of favor lately, as most investors have piled into growth stocks, while dividend payers are traditionally more mature companies in old-economy sectors.

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL - Free Report) invests in companies that have grown dividends for more than 25 years. Is it time to invest in these high-quality companies with solid balance sheets and stable cash flows?

The Nasdaq-100 Dorsey Wright Momentum ETF (QQQA - Free Report) invests in 21 leading stocks from the Nasdaq-100, based on their momentum. The fund has skyrocketed 51% this year, thanks mainly to the surge in stocks like Micron Technology (MU - Free Report) and Intel (INTC - Free Report) .

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

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