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Index IDEA: Dividend-oriented US small cap stocks show strong performance YTD

The Russell 2000 Dividend Growth Index measuring dividend-oriented US small-cap stocks has risen more than the Russell 2000 Index measuring the broad universe of US small-cap stocks for the full year to and 2016 year-to-date as of November 11, according to global index provider FTSE Russell.

The Russell 2000 Dividend Growth Index is part of the Russell Dividend Growth Index Series, a series of indexes that tracks the performance of US companies, as represented by the Russell 1000, 2000 and 3000 Indexes, that have consistently increased their dividend payments over ten or more years. The Index also underlies the ProShares Russell 2000 Dividend Growers ETF (SMDV), introduced in February 2015.

Catherine Yoshimoto, Senior Index Product Manager, FTSE Russell:

“FTSE Russell has designed its Russell Dividend Growth Index Series to select stocks that have demonstrated consistent increases in dividend payments while screening against too much concentration in single securities or sectors. This unique methodology makes the Russell 2000 Dividend Growth Index a robust measure of the performance of dividend-oriented US small-cap stocks.“

The Russell 2000 Dividend Growth Index has risen 24.6% and 22.9% for the year-to-date and one year periods ended November 11, more than 10% and 12% more, respectively, than the broad US small-cap Russell 2000 Index for the same time period. 

Simeon Hyman, Head of Investment Strategy, ProShares ETFs:

“Investors have become increasingly familiar with the performance potential of companies that consistently grow their dividends. While many associate dividend growth strategies with large-cap stocks, the performance differential between the Russell 2000 Dividend Growth Index relative to the Russell 2000 Index year-to-date and in the past year emphatically demonstrates the power of dividend growth in small-caps as well.”


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All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.

Views expressed by Catherine Yoshimoto of FTSE Russell and Simeon Hyman of ProShares ETFs are as of November 16th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell Microcap® Index or the fitness or suitability of the indexes for any particular purpose to which they might be put.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this IDEA should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.

Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets.

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