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First Trust S&P 500 Diversified Dividend Aristocrats ETF (NASDAQ: KNGZ - Get Free Report) was down 0.6% during trading on Wednesday. The company traded as low as $36.47 and last traded at $36.47. Approximately 2,944 shares were traded during trading, a decline of 63% from the average daily volume of 7,980 shares. The stock had
KNGZ follows a "Dividend Aristocrat" light strategy, where most constituents only require 15 years of consecutive, not growing, dividend payments. Its expected dividend yield is 2.77% based on current prices. KNGZ tracks a sector-neutral Index, which means its allocations match the S&P 500. As a result, its Technology exposure is 33% and far above what most dividend ETFs feature. This composition is beneficial in growth markets, but KNGZ lacks enough exposure to safer sectors like Consumer Staples and Utilities that typically outperform in market drawdowns.
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.
SEC filings for KNGZ aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.