This is an actively managed ETF based on T. Rowe Price's flagship dividend growth strategy, which has been run since 1992. It analyzes corporate earnings growth and cash flow to select stocks expected to deliver sustainable dividend growth.

It is suited to investors who look for long-term appreciation in corporate value and rising dividend payouts rather than short-term high yields.

T. Rowe Price launched the ETF in 2020, and it follows an active (actively managed) approach.

Using a bottom-up approach that analyzes the fundamentals of individual stocks, the fund holds roughly 100 to 125 stocks in its portfolio. It gives priority to companies with robust business models capable of raising dividends and solid financial structures.

• An active dividend growth strategy validated over a long period
• Stock selection based on qualitative corporate growth rather than short-term returns

Assets under management (AUM) stand at $1.3B, and the total expense ratio is 0.50% per year.

Given the nature of active ETFs, the fee is somewhat higher than that of index-tracking products, but it covers stock selection backed by a professional research team.

As market interest in dividend growth stocks has continued, the fund has maintained a solid trajectory. Its holdings, which have strong financial structures, have shown relative resilience even amid changes in the interest rate environment.

Inflows from investors who prioritize stable cash flow have been steady, and demand for defensive dividend growth stocks tends to rise when market volatility increases.

Its strength is stable dividend increases grounded in qualitative corporate growth, while its weakness is a higher expense level compared with index-tracking ETFs.

DGRO, shown in the table, is a representative low-cost dividend growth ETF, while NUGO and COWG are similar products that focus on growth and cash flow, respectively. Direct substitutes include Vanguard's VIG and Schwab's SCHD. If you want to focus on dividend aristocrats, NOBL is an option, and if you want to pursue dividend growth while maintaining exposure to technology stocks, DGRW is also worth considering.

Here are the points to review before investing in TDVG. Investors should fully recognize that this product is not a simple high-dividend stock fund but an active fund that seeks a balance between growth and dividends.

Note that when interest rates are rising, competition from bond yields can temporarily reduce the appeal of dividend stocks overall, and volatility that depends on market conditions should be fully taken into account.

It can be regarded as a premium dividend growth solution for investors who want stable dividend increases together with capital gains from corporate growth.