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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