The ProShares S&P Technology Dividend Aristocrats ETF (TDV) 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?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
TDV is managed by Proshares, and this fund has amassed over $249.93 million, which makes it one of the average sized ETFs in the Technology ETFs. This particular fund, 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for TDV are 0.45%, which makes it on par with most peer products in the space.
TDV's 12-month trailing dividend yield is 1.09%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 80% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Avnet Inc (AVT) accounts for about 3.33% of total assets, followed by Kulicke & Soffa Industries (KLIC) and Littelfuse Inc (LFUS).
Its top 10 holdings account for approximately 26.49% of TDV's total assets under management.
Performance and Risk
Year-to-date, the ProShares S&P Technology Dividend Aristocrats ETF has added about 0% so far, and it's up approximately 15.68% over the last 12 months (as of 03/09/2026). TDV has traded between $62.35 $90.91 in this past 52-week period.
The fund has a beta of 1.06 and standard deviation of 18.93% for the trailing three-year period. With about 40 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) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) tracks NASDAQ US Dividend Achievers Select Index. iShares Core Dividend Growth ETF has $37.84 billion in assets, Vanguard Dividend Appreciation Index Fund ETF Shares has $102.05 billion. DGRO has an expense ratio of 0.08% and VIG changes 0.04%.
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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ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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