U.S. equity markets have struggled so far in 2025, with the S&P 500 declining over 8% since its peak on February 19, 2025[1], and erasing much/all the post-presidential election gains. A key driver of this decline is the index’s heavy concentration in the technology sector, which accounts for approximately 30% of the S&P 500. Meanwhile, the Solactive United States Dividend Elite Champions Index (“SMVP Index”), with its focus on high-quality dividend growth stocks, has demonstrated greater stability, falling just 1.17% over the same period.

SMVP — HAMILTON CHAMPIONS™ U.S. Dividend Index ETF

• Designed to track the Solactive United States Dividend Elite Champions Index
• 0% management fee until January 31, 2026[2]
• Available with modest 25% leverage to enhance growth potential (SWIN)

 

SMVP Index vs. S&P 500 — Since S&P 500 All-Time High[3]

A Differentiated Index Approach

Unlike traditional market cap-weighted indices like the S&P 500 which are heavily influenced by the largest companies, SMVP’s Index rebalances quarterly to equal weight across its holdings and employs a 20% sector cap. This portfolio structure helps reduce concentration risk, particularly in high-beta sectors like technology — while promoting diversification across industries.

SMVP — Sector Mix[4]

Why Dividend Growth Matters

Companies that consistently increase/sustain their dividends over time tend to have strong balance sheets, better equipping them to weather economic volatility. SMVP’s Index follows a disciplined stock selection process, focusing on blue chip companies with a minimum of 25 consecutive years of stable and increasing dividends (i.e., no cuts). This approach ensures that all constituents are well-established businesses with strong financial foundations and maintain a commitment to returning capital to shareholders. To learn more about the HAMILTON CHAMPIONS™ ETFs and their index methodology, visit the HAMILTON CHAMPIONS™ Dividend Growth Playbook.

Performance and Risk Profile

Since its inception in 2006, SMVP’s Index has delivered comparable total returns to the S&P 500, but importantly, with lower volatility. This has resulted in a smoother investment experience, characterized by shallower drawdowns and faster recoveries compared to the broader market. Additionally, SMVP’s Index currently provides an attractive 2.3% dividend yield, significantly higher than the S&P 500’s 1.3% yield[5], making it particularly appealing for income-oriented investors.

SMVP Index vs. S&P 500 — Growth of $100K[6]

 

		SMVP Index	S&P 500
Yield[4]	Higher Monthly Income	2.3%	1.3%
Annualized Return[7]	Similar Returns	10.7%	10.5%
Standard Deviation[8]	Lower Volatility	17.8%	19.7%
Max Drawdown[9]	Lower Peak-to-Trough Drawdown	(48.5%)	(55.3%)
Time to Recovery[10]	Faster Recovery from Trough-to-Peak	575 days	1120 days

SMVP — A Cost-Effective Way to Access U.S. Dividend Leaders

By focusing on companies with strong, consistent dividend growth, along with its sector diversification, we believe the HAMILTON CHAMPIONS™ U.S. Dividend Index ETF (SMVP) can be a core holding for investors seeking exposure to high-quality U.S. stocks with lower volatility.

 

 

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A word on trading liquidity for ETFs …

Hamilton ETFs are highly liquid ETFs that can be purchased and sold easily. ETFs are as liquid as their underlying holdings and the underlying holdings trade millions of shares each day.

How does that work? When ETF investors are buying (or selling) in the market, they may transact with another ETF investor or a market maker for the ETF. At all times, even if daily volume appears low, there is a market maker – typically a large bank-owned investment dealer – willing to fill the other side of the ETF order (at net asset value plus a spread). The market maker then subscribes to create or redeem units in the ETF from the ETF manager (e.g., Hamilton ETFs), who purchases or sells the underlying holdings for the ETF.

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Commissions, management fees and expenses all may be associated with investments in exchange traded funds (ETFs) managed by Hamilton ETFs. Please read the prospectus before investing. Indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and does not take into account sales, redemptions, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Only the returns for periods of one year or greater are annualized returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this website may constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Hamilton ETFs undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.

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[1] As of March 18, 2025
[2] Annual management fee of 0.19% is rebated to an effective management fee of 0.00% until at least January 31, 2026.
[3] Source: Bloomberg, Solactive AG. Data from February 19, 2025, to March 14, 2025. The graph illustrates the growth of an initial investment of $100,000 in the Solactive United States Dividend Elite Champions Index vs. the S&P 500 Total Return Index with total returns. The graph is for illustrative purposes only and intended to demonstrate the historical impact of the indexes growth rate. It is not a projection of future index performance, nor does it reflect potential returns on investments in the ETF. Investors cannot directly invest in the index. All performance data assumes reinvestment of distributions and excludes management fees, transaction costs, and other expenses which would have impacted an investor’s returns.
[4] As at February 28, 2025.
[5] Yield: The annual dividend income expressed as a percentage of the share price on February 28, 2025
[6] Source: Bloomberg, Solactive AG. Data from November 1, 2006, to February 28, 2025. The graph illustrates the growth of an initial investment of $100,000 in the Solactive United States Dividend Elite Champions Index (SDLUSCT) vs. the S&P 500 Total Return Index with annual compounded total returns. The graph is for illustrative purposes only and intended to demonstrate the historical impact of the indexes compound growth rate. It is not a projection of future index performance, nor does it reflect potential returns on investments in the ETF. Investors cannot directly invest in the index. All performance data assumes reinvestment of distributions and excludes management fees, transaction costs, and other expenses which would have impacted an investor’s returns. SDLUSCT data prior to December 31, 2024, is hypothetical back-tested data using actual historical market data. Actual performance may have been different had the index been live during that period.
[7] Annualized Return: The annualized total rate of return.
[8] Standard Deviation: A measure of an investment’s return volatility, indicating the degree of variation from its average return.
[9] Max Drawdown: The largest percentage drop from an investment’s peak value to its lowest point.
[10] Time to Recovery: The time it takes for an investment to recover from a drawdown and reach its previous peak value.
These projections are uncertain and may be influenced by factors such as market volatility, economic conditions, and company performance. The forecasted P/E ratios should not be considered as guarantees of future performance, and actual results may differ materially from the estimates provided. Investors should not rely solely on these projections when making investment decisions. Past performance is not indicative of future results. Investors cannot directly invest in the index. All performance data assumes reinvestment of distributions, and excludes management fees, transaction costs, and other expenses which would have impacted an investor’s results. Solactive United States Dividend Elite Champions Index data prior to December 31, 2024, is hypothetical back-tested data using actual historical market data. Actual performance may have been different had the index been live during that period.