A New Dividend ETF for Income-Focused Investors

Dividend investors have a new exchange-traded fund (ETF) they can now consider for their portfolios. In November, Roundhill Investments launched a new ETF, called the Roundhill S&P Dividend Monarchs ETF (NYSE Arca:KNGS). Roundhill says this is “the first ever U.S. listed ETF to track the performance of Dividend Monarchs, an elite group of U.S. blue chip companies that have grown their dividends for 50+ consecutive years.”

The fund’s top holdings include popular dividend stocks such as 3M (NYSE:MMM), Target (NYSE:TGT), and AbbVie (NYSE:ABBV). The largest holding accounts for just under 5% of the ETF’s total weight. There are 36 holdings in the fund and it has an expense ratio of 0.35%, which is modest compared to other funds.

This is an ETF that will appeal to risk-averse investors who want safe dividend stocks whose recurring income may grow over time. This ETF could particularly attract investors in the retirement phase or nearing retirement, who may be in search of a steady income stream along with the potential for capital appreciation to outpace inflation. Moreover, long-term investors aiming to build wealth over time might also find the strategy employed by this ETF aligning with their investment goals. This isn’t a fund that should likely experience significant volatility as it has a beta of less than 0.8, indicating that it doesn’t move in unison with the markets.

With a dividend yield of around 3.5%, the payout is a fairly high for investors and it’s more than double the S&P 500 average payout. If you’re looking for a stable ETF to hold for the long haul, this could be a good one to consider.