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Is ProShares S&P Technology Dividend Aristocrats ETF (TDV) a Strong ETF Right Now?
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The ProShares S&P Technology Dividend Aristocrats ETF (TDV - Free Report) was launched on 11/05/2019, and is a smart beta exchange traded fund designed to offer broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Managed by Proshares, TDV has amassed assets over $256.79 million, making it one of the average sized ETFs in the Technology ETFs. TDV, before fees and expenses, seeks to match the performance of the S&P TECHNOLOGY DIVIDEND ARISTOCRATS INDX.
The S&P Technology Dividend Aristocrats Index targets companies from information technology, internet and direct marketing retail, interactive home entertainment, and interactive media and services segments of the economy.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.45%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.11%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
TDV's heaviest allocation is in the Information Technology sector, which is about 77% of the portfolio. Its Industrials and Financials round out the top three.
When you look at individual holdings, Genpact Ltd (G - Free Report) accounts for about 3.18% of the fund's total assets, followed by Csg Systems Intl Inc (CSGS - Free Report) and Intl Business Machines Corp (IBM - Free Report) .
Its top 10 holdings account for approximately 26.42% of TDV's total assets under management.
Performance and Risk
So far this year, TDV has gained about 3.96%, and was up about 11.83% in the last one year (as of 02/26/2025). During this past 52-week period, the fund has traded between $67.37 and $80.69.
The fund has a beta of 1.04 and standard deviation of 19.88% for the trailing three-year period. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
ProShares S&P Technology Dividend Aristocrats ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core Dividend Growth ETF (DGRO - Free Report) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG - Free Report) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $31.25 billion in assets, Vanguard Dividend Appreciation ETF has $89.24 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is ProShares S&P Technology Dividend Aristocrats ETF (TDV) a Strong ETF Right Now?
The ProShares S&P Technology Dividend Aristocrats ETF (TDV - Free Report) was launched on 11/05/2019, and is a smart beta exchange traded fund designed to offer broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Managed by Proshares, TDV has amassed assets over $256.79 million, making it one of the average sized ETFs in the Technology ETFs. TDV, before fees and expenses, seeks to match the performance of the S&P TECHNOLOGY DIVIDEND ARISTOCRATS INDX.
The S&P Technology Dividend Aristocrats Index targets companies from information technology, internet and direct marketing retail, interactive home entertainment, and interactive media and services segments of the economy.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.45%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.11%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
TDV's heaviest allocation is in the Information Technology sector, which is about 77% of the portfolio. Its Industrials and Financials round out the top three.
When you look at individual holdings, Genpact Ltd (G - Free Report) accounts for about 3.18% of the fund's total assets, followed by Csg Systems Intl Inc (CSGS - Free Report) and Intl Business Machines Corp (IBM - Free Report) .
Its top 10 holdings account for approximately 26.42% of TDV's total assets under management.
Performance and Risk
So far this year, TDV has gained about 3.96%, and was up about 11.83% in the last one year (as of 02/26/2025). During this past 52-week period, the fund has traded between $67.37 and $80.69.
The fund has a beta of 1.04 and standard deviation of 19.88% for the trailing three-year period. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
ProShares S&P Technology Dividend Aristocrats ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core Dividend Growth ETF (DGRO - Free Report) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG - Free Report) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $31.25 billion in assets, Vanguard Dividend Appreciation ETF has $89.24 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.