ProShares S&P 500 Dividend Aristocrats ETF

This ETF is an exchange-traded fund that tracks an index of large-cap U.S. companies with a proven history of increasing their dividend payouts annually. It specifically targets established, profitable firms that have raised their dividends for at least 25 consecutive years.

The fund trades under the ticker symbol SMID and is designed for investors seeking reliable, growing income streams. It aims to replicate the performance of a specialized S&P dividend index by holding an equal-weighted portfolio of these stocks.

To be included in the index tracked by this ETF, a company must be part of the S&P 500 and have increased its dividend payouts annually for at least 25 consecutive years. This strict requirement ensures that only highly stable and financially healthy firms are included in the portfolio.

While the underlying companies pay dividends on different quarterly schedules, the ProShares S&P 500 Dividend Aristocrats ETF distributes its income to shareholders on a quarterly basis. This makes it a popular choice for long-term investors building passive income.