Invest In High-Quality Companies With Buyback & Dividend ETFs

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In this episode of ETF Spotlight, I speak with Kieran Kirwan, Director, Investment Strategy at ProShares, about buyback, dividend growth, and momentum strategies.

American companies are buying back their shares at a record pace. S&P 500 companies announced plans to buy back $665 billion worth of shares in the four months through April, the most ever to start a year, according to Bloomberg.

Earlier this month, Apple (AAPL - Free Report) announced a new $110 billion buyback program. And last week, NVIDIA (NVDA - Free Report) announced an $80 billion share buyback plan.

Share repurchases are down sharply for the rest of the Magnificent Seven this year, as these companies are spending heavily on their AI buildout.

The ProShares S&P 500 Buyback Aristocrats ETF (BUYB - Free Report) is the first and only ETF focused exclusively on companies with a consistent history of share buybacks. According to academic research, this strategy has historically tended to outperform other companies.

Dividend-paying stocks have been out of favor lately, as most investors have piled into growth stocks, while dividend payers are traditionally more mature companies in old-economy sectors.

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL - Free Report) invests in companies that have grown dividends for more than 25 years. Is it time to invest in these high-quality companies with solid balance sheets and stable cash flows?

The Nasdaq-100 Dorsey Wright Momentum ETF (QQQA - Free Report) invests in 21 leading stocks from the Nasdaq-100, based on their momentum. The fund has skyrocketed 51% this year, thanks mainly to the surge in stocks like Micron Technology (MU - Free Report) and Intel (INTC - Free Report).

Video Length: 00:32:52