TDIV ETF

TDIV invests in technology dividend stocks, offering a 1.6% yield but underperforming other tech funds due to its tilt towards value. The fund's portfolio is heavily weighted towards large-cap value stocks, which are more stable but have weaker growth profiles. While TDIV has a history of growing dividends, its total return lags behind other technology ETFs like Vanguard Information Technology ETF and Technology Select Sector SPDR ETF.

First Trust NASDAQ Technology Dividend Index Fund ETF offers exposure to the tech sector while maintaining a dividend yield of 1.4%. The filtering strategy for holdings focuses on history, rather than forward-looking potential. As a result, TDIV's holdings don't include some strong tech companies. There are alternative dividend ETFs that offer a better dividend growth rate, such as SCHD.

The First Trust NASDAQ Technology Dividend Index Fund ETF provides investors with access to technology and telecommunications companies that pay dividends. The ETF's holdings include major companies like Broadcom, Microsoft, IBM, Texas Instruments, and Qualcomm. Although these companies offer reliable dividends, the fund's overall dividend yield is only 1.62%, reflecting the strong performance of the technology sector.

TDIV is a passively managed investment vehicle targeting dividend-paying tech & telecom companies. TDIV is offering a robust quality story with something to appreciate regarding value characteristics. Its performance in the past was mostly solid, with 2023 being especially strong. However, there are a few major downsides: soft growth characteristics, a fairly burdensome expense ratio of 50 bps, and a too-low yield.

First Trust NASDAQ Technology Dividend Index Fund tracks the Nasdaq Technology Dividend Index and focuses on higher-yielding technology and telecom companies. TDIV has significantly underperformed historically due to security selection. TDIV's selection criteria result in it running underweights to key technology companies such as Apple, Alphabet, Meta, and Nvidia.

First Trust NASDAQ Technology Dividend Index Fund ETF holds 83 dividend stocks in information technology and communication services. The TDIV ETF is overweight in semiconductors and in the top 5 holdings as well. TDIV has attractive valuation ratios compared to sector benchmarks but has lower growth, quality and performance metrics.

First Trust NASDAQ Technology Dividend Index Fund offers a different weighting mix than other Tech-heavy funds, providing diversification opportunities. TDIV has shown strong performance in 2023 and that could continue. TDIV's focus on dividends brings some different companies to the top holdings list, compared to funds that track the NASDAQ index or NASDAQ 100 index.