This is an actively managed dividend growth ETF in which the management team picks stocks directly rather than tracking a specific index. It focuses on large-cap US-listed companies that have increased their dividends faster than the market average, and it considers any company listed on a US exchange eligible, regardless of where its headquarters is located.

It suits long-term investors who value a dividend that grows every year over a high current yield and who can accept a concentrated strategy with a small number of holdings.

The ETF is run by Loop Brock Capital Management using an active management approach.

From among large-cap companies with a steady record of dividend increases, the fund selects only those it believes have the business execution to support further increases. It invests most of its net assets in dividend-paying stocks, and while it narrows the number of holdings, it spreads them across sectors and industries to avoid leaning toward any single one. It favors long holding periods over frequent trading.

• An active structure in which the management team directly judges the sustainability of dividend increases, rather than tracking an index
• A concentrated portfolio with a narrow number of holdings and an emphasis on low turnover
• The pace of dividend increases, rather than the yield itself, serves as the selection criterion

Assets under management (AUM) stand at $77.3M, and the total expense ratio is 0.50% per year.

As a newly listed fund, its trading volume and bid-ask spreads may not be as deep as those of large dividend ETFs. It is safer to manage your execution price with limit orders.

Dividend growth strategies have tended to hold up relatively well when markets are shaky and to lag when growth stocks lead. Because the fund is concentrated in a small number of holdings, it is also worth noting that performance can vary widely depending on the results of individual companies.

When interest rates fall, money tends to flow back into dividend stocks, while rising rates put pressure on them as they are compared with bond yields. Actively managed dividend ETFs also tend to grow their assets more slowly than large passive products.

Its strength lies in having people hand-pick companies for their ability to keep raising dividends, while its weaknesses are the performance variance that comes with concentration and a thin trading base.

Passive options that pursue the same dividend growth goal include SCHD, VIG, and DGRO. They pick stocks mechanically according to rules, tend to carry lower fees, and hold far more stocks. If you prefer a narrower selection of only companies that have raised dividends for a long time, NOBL and similar funds are also worth comparing. This ETF differs from them in that people judge the capacity for further increases.

Here are the points to check before investing. Active dividend growth ETFs differ from passive products of similar names in cost, number of holdings, and ease of trading, so it is best to weigh each item.

With so few holdings, bad news at an individual company shows up in performance right away. When rates are rising, dividend stocks as a group tend to be held back, and when trading is thin, orders may not fill at the price you want. Exchange rate movements also add to returns measured in Korean won.

It is worth considering if you want a approach in which people hand-pick companies whose dividends grow every year. If cost and diversification come first, compare it with passive dividend growth ETFs as well. Check the bid-ask conditions before trading and approach it with limit orders.