LEAD Profile
The Siren DIVCON Leaders Dividend ETF focuses on investing in companies that exhibit a strong track record of consistently growing their dividends. Under normal market conditions, the fund commits at least 80% of its net assets to securities included in its benchmark index. This index is specifically designed to leverage the investment strategy that posits companies with a consistent history of dividend growth are likely to deliver superior returns compared to the overall market. Conversely, firms that either do not grow their dividends or cut them are generally expected to underperform relative to the market.
The benchmark index employed by the ETF is constructed based on the DIVCON rating system, which evaluates companies' potential for future dividend growth. This system incorporates various financial metrics and historical performance indicators to identify firms with the highest likelihood of maintaining or increasing their dividend payouts. By focusing on such companies, the ETF aims to provide investors with a portfolio that not only generates income through dividends but also offers potential for capital appreciation.
In addition to its focus on dividend growth, the Siren DIVCON Leaders Dividend ETF seeks to mitigate risk by investing in companies that have demonstrated financial stability and resilience. This approach is intended to protect investors from the volatility often associated with dividend cuts or reductions. The ETF's investment strategy is grounded in the belief that companies with robust dividend growth potential are generally well-managed and possess strong fundamentals, making them more likely to offer attractive long-term returns.
Managed by Siren ETFs, the fund benefits from the firm’s expertise in dividend-focused investing. Siren ETFs is known for its innovative approach to creating investment products that cater to income-focused investors. The Siren DIVCON Leaders Dividend ETF is particularly suited for those seeking a blend of income and growth potential, leveraging the power of consistent dividend growth to achieve superior investment performance over time.
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