This is the “hub page” for the Dividend Growth “ETF” that we created as an alternative to the many dividend ETFs on the market.
Reason for this “ETF”
Dividend growth investing (DGI) has exploded in popularity over the past few years. And for good reason: It offers shareholders the opportunity to collect reliable, steady, growing income year after year.
With this in mind, we’ve invested a lot of time and money educating our readers on the wonderful world of DGI — with the hope that many will embrace this rewarding, long-term strategy for their own benefit. Along the way, we’ve commissioned the expertise and guidance of Dave Van Knapp, an authority in the DGI space.
As one of our faithful guides, Dave has authored over a dozen lessons on Dividend Growth Investing… he gives us an inside look at one of his personal Dividend Growth Portfolios… and each and every month he identifies what he calls his Dividend Growth Stock of the Month (a solid dividend grower you might want to consider for your own portfolio).
On January 1, 2017, we introduced you to Dave’s latest work: a general purpose dividend growth “ETF” that anyone can invest in!
It’s Not a Real ETF – It’s a Motif Portfolio
Of course, Dave’s Dividend Growth “ETF” is not a true ETF (exchange-traded fund). Rather, it’s a simulated one that Dave has built over at Motif Investing. The best part is, Dave’s “ETF” — or rather, his motif — is fully investable for anyone.
What’s a motif? In short, it’s a portfolio. Specifically, a motif is a basket of up to 30 stocks intelligently weighted to reflect an investment theme, market insight, or innovative trend. You can select one already built, customize one, or design your own. Then you can buy your motif in just one click.
What Dave has done is build a basket of stocks to reflect a broad, basic approach to dividend growth investing. Whether you’re just getting started in building your own dividend growth portfolio, or whether you want to back away from the time and effort required to manage an existing one, Dave may have just created the perfect solution for you. Read on to learn more about this unique opportunity…
Q1 Update: Our Dividend Growth “ETF” is Already Paying Dividends Like Crazy (April 4, 2017)
I’m Investing $10,000 in These Dividend Growth Stocks on January 3 (December 31, 2016)
Announcing the 56 Semi-Finalists for Our Dividend Growth “ETF” (December 12, 2016)
Picking Stocks for Our Dividend Growth “ETF” (November 16, 2016)
Our Dividend Growth “ETF”: Business Plan (November 12, 2016)
We’re Building a Dividend Growth “ETF” that Anyone Can Invest In! (November 7, 2016)
Motif tracks price performance, but unfortunately it does not track dividend performance or total return.
In DGI, of course, dividend growth and reliability is the central focus, and total return is often of interest to many investors. Therefore, we will use this space to track the dividends and total performance of Dave’s Dividend Growth “ETF.”
Through March 31, 2017 (3 months): The portfolio is yielding 3.4%.
Through March 31, 2017 (3 months): The portfolio’s total return is 2.9% since its inception at the beginning of 2017.
Note that this total return covers dividends + price change but not the reinvestment of dividends.
Dave’s Disclosure: On January 3, 2017, I invested about $10,000 in this “ETF” so that I have skin in the game. I am not building the Motif portfolio to make money outside my investments, but Motif has a royalty program under which I will receive $1 every time someone purchases or rebalances the portfolio discussed here. My interest in building this portfolio is for educational value, plus to have another illustrative real portfolio tracking forward. I believe that real-time portfolios are more educational and psychologically realistic than back-tests. Back-tests utilize 20-20 hindsight, and they do not challenge many of the issues that investors face in managing a real portfolio.
DTA’s Disclosure: When Dave approached us with his idea to build a general purpose dividend growth “ETF” the public can invest in (and that would offer several advantages over a true ETF), we were thrilled about the opportunity. Not only would it provide value to our readers, but it’d give us another way to help get the word out about our favorite long-term strategy: dividend growth investing. That said, it wasn’t until a few days before the January 1st, 2017 launch of Dave’s “ETF” that we discovered that Motif Investing offers an affiliate program for publishers like us who refer potential new customers to them. Since we were already referring our readers to Motif Investing via links in Dave’s articles, as a new affiliate of Motif, we will now simply be paid for doing what we’ve been doing for free. We will get paid a $45 commission on every completed and approved brokerage application at Motif that is sourced from our site. There’s no extra cost to you if you sign up for a Motif account through an ad on DailyTradeAlert.com. If there was, we wouldn’t be doing this. Instead, there’s actually potential upside: As an affiliate, from time to time we’re able to offer special incentives that you may otherwise miss out on. See the banner below for the current offer. Rest assured, our new position as a Motif affiliate will in no way impact the quality of Dave’s research or stock selection in his dividend growth “ETF.” After all, as Dave mentioned above, he’s got skin in the game, as he’s started off with an initial investment of almost $10,000 in his “ETF”.