Amplify Debuts New Dividend-Growth Strategy with DRVR

On July 9, Amplify ETFs launched the Amplify S&P 500 Dividend Driver ETF (DRVR) , with an expense ratio of 39 basis points. The fund tracks the S&P 500 Dividend Drivers Index, providing exposure to S&P 500 companies with a proven track record of dividend growth .

DRVR selects S&P 500 companies with a minimum 10-year track record of increasing dividends that are also forecasted to continue growth. They’re also ranked by a composite score that considers metrics such as five-year dividend growth, forecasted growth, and ROIC.

While many dividend-growth funds exist on the market, their structures vary significantly. This makes it a crucial for investors to understand the methodology behind each strategy.

The fund targets companies within the S&P 500 index that have increased their dividends per share every calendar year over the past ten years and are forecasted to continue increasing dividends the following year, based on data from S&P Global Market Intelligence. Qualifying companies are then ranked using a single composite score that incorporates five-year dividend growth, forecasted growth, and return on invested capital (ROIC).

Companies that have historically delivered consistent dividend growth often demonstrate strong earnings power, disciplined capital allocation, and durable business models, according to an Amplify ETFs press release. Combining dividend growth, forward-looking expectations, and diversification controls, DRVR serves as a durable core equity income allocation. This can prove durable across a variety of different market environments. Currently, the fund maintains heavy allocations to the industrial and financial sectors.