What is a dividend growth ETF?

Dividend growth ETFs focus on companies with a record of increasing dividends over time. The idea is to prioritize sustainable payouts and business quality, rather than simply buying the highest yielders.

These ETFs often have different sector exposure than high-yield dividend funds. They may tilt toward companies with stable cash flows and strong balance sheets.

If you're choosing a dividend growth ETF, look at the screening rules (years of dividend growth required, payout ratio limits, quality metrics) and how the portfolio behaves in different markets. For many investors, dividend growth is as much about resilience as it is about income.