Is ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) a Strong ETF Right Now?

The ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), a smart beta fund with $1.77 billion in assets, aims to track the S&P MidCap 400 Dividend Aristocrats Index, comprised of companies that have increased dividend payments for at least 15 years. REGL has a relatively high expense ratio of 0.40% and a 12-month trailing dividend yield of 2.52%, with its largest sector allocation in Financials (30.90%); the fund is up 1.12% YTD and 11.49% over the past year, but cheaper, market cap weighted alternatives like DGRO and VIG exist for investors seeking lower costs and risk.

Analysis

The ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), launched on February 3, 2015, is a smart beta fund managing $1.77 billion in assets, designed to provide exposure to the Mid Cap Value category by tracking the S&P MidCap 400 Dividend Aristocrats Index. This index focuses on S&P MidCap 400 companies that have consistently increased dividend payments for at least 15 consecutive years. REGL's annual operating expense ratio is 0.40%, positioning it as one of the more expensive products in its space, and it offers a 12-month trailing dividend yield of 2.52%. The portfolio's largest sector allocation is to Financials at 30.90%, followed by Industrials and Utilities. Key individual holdings include Evercore Inc. (EVR) at 2.09% of total assets, Sei Investments Company (SEIC), and Cullen/Frost Bankers Inc. (CFR), with the top 10 holdings comprising 17.92% of the fund's assets, distributed across approximately 54 holdings to diversify company-specific risk. As of June 2, 2025, REGL recorded a year-to-date return of 1.12% and an 11.49% return over the past year, with its price trading between $72.52 and $88.79 during the past 52 weeks. The ETF exhibits a beta of 0.80 and a standard deviation of 16.82% for the trailing three-year period, categorizing it as a medium-risk option. While REGL provides a targeted approach to mid-cap dividend growers, investors have access to alternative ETFs such as the iShares Core Dividend Growth ETF (DGRO), with $31.06 billion in assets and a 0.08% expense ratio, and the Vanguard Dividend Appreciation ETF (VIG), managing $89.57 billion with a 0.05% expense ratio, which offer lower costs.

Key Decisions for Investors

• Investors seeking exposure to mid-cap companies with a sustained history of dividend growth via the S&P MidCap 400 Dividend Aristocrats Index should weigh REGL's specific strategy and its 11.49% one-year return (as of 06/02/2025) against its relatively high 0.40% expense ratio.
• Carefully assess REGL's significant 30.90% portfolio allocation to the Financials sector and its medium-risk profile, characterized by a beta of 0.80, to ensure alignment with individual diversification needs and risk tolerance.
• Consider comparing REGL with larger, lower-cost dividend-focused ETFs like DGRO (0.08% expense ratio) and VIG (0.05% expense ratio), particularly if cost efficiency or different dividend growth screening methodologies are primary investment objectives.