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Dividend Aristocrats + Equal Weighting Has Beat Market For 14 Of 15 Years

In a recent series of articles, I highlighted five strategies for buy-and-hold investors that have historically beat the market.

The Dividend Aristocrats, S&P 500 constituents which have paid increasing levels of dividends for at least twenty-five consecutive years, have produced a return profile exceeding the broader market by 2.5% per annum over the past twenty years while exhibiting only three-quarters of the return volatility. The S&P 500 Dividend Aristocrats ETF (NOBL) closely replicates the Dividend Aristocrats.

The S&P 500 Equal Weight Index is a version of the S&P 500 where the constituents are equal weighted as opposed to the traditional market capitalization weighting of the benchmark gauge. Guggenheim S&P 500 Equal Weight ETF (RSP) replicates this alternative weight index. When the equal-weighted version of the index is rebalanced quarterly to return to equal weights, constituents which have underperformed are purchased and constituents which have outperformed are reduced, a contrarian… Read More …