TDIV: FIRST TRUST NASDAQ TECHNOLOGY DIVIDEND INDEX FUND
Understanding the First Trust NASDAQ Technology Dividend Index Fund (TDIV)
The First Trust NASDAQ Technology Dividend Index Fund (TDIV) is an ETF designed to provide exposure to technology companies that pay dividends. It focuses on the technology sector while seeking out companies that distribute cash to their shareholders.
What this ETF is trying to do
TDIV aims to invest in technology-focused companies. Based on its top holdings, the fund includes large names like Microsoft Corp and Broadcom Inc. It manages a portfolio of 96 total holdings, though the list provided below shows only the largest ones. Because these holdings can change over time, it is important to check for updates regularly.
Top Holdings:
• Microsoft Corp (9.49%)
• Broadcom Inc (6.94%)
• International Business Machines Corp (6.84%)
• Texas Instruments Inc (6.25%)
• Oracle Corp (5.35%)
• TSM (4.34%)
• Qualcomm Inc (2.78%)
• Analog Devices Inc (2.74%)
• Motorola Solutions Inc (2.62%)
• Applied Materials Inc (2.39%)
What the numbers show
When looking at how this fund has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes both price changes and dividends).
• Year-to-Date (YTD): The price return is approximately 19.62%, while the total return is approximately 20.84%.
• One-Year: The price return was approximately 16.92%, and the total return was approximately 18.71%.
• Three-Year: The price return was approximately 105.68%, and the total return was approximately 115.86%.
An estimated price from roughly one year ago was $99.08, compared to the current price of $115.84.
Income and distribution explanation
TDIV provides cash distributions to investors. The current distribution yield is approximately 1.37%. This number describes the cash paid out relative to the current ETF price. The fund usually pays these distributions on a quarterly basis, having made 4 payments over the last 12 months.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, regarding price erosion (the decline of the market share price), the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.
Pros
• Strong Price Performance: The fund has shown significant positive price returns over the one-year and three-year periods.
• Income Rating: The fund has an income rating grade of "A" with a score of 85.
• Total Return: The total return figures are higher than the price return figures, meaning dividends have added value to the overall performance.
Cons
• Sector Concentration: The fund is focused on the technology sector, which may behave differently than the broader market.
• Lower Yield: While it provides income, a 1.37% yield may be considered low compared to other types of income-focused investments.
Beginner takeaway
TDIV is a technology-focused ETF that has recently shown both share-price growth and total returns that include dividends. While it provides regular quarterly income, the yield is relatively modest. The data shows no signs of price erosion.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MICROSOFT CORP | MSFT | 9.49% |
| 2 | BROADCOM INC | AVGO | 6.94% |
| 3 | INTERNATIONAL BUSINESS MACHINES CORP | IBM | 6.84% |
| 4 | TEXAS INSTRUMENTS INC | TXN | 6.25% |
| 5 | ORACLE CORP | ORCL | 5.35% |
| 6 | n/a | TSM | 4.34% |
| 7 | QUALCOMM INC | QCOM | 2.78% |
| 8 | ANALOG DEVICES INC | ADI | 2.74% |
| 9 | MOTOROLA SOLUTIONS INC | MSI | 2.62% |
| 10 | APPLIED MATERIALS INC | AMAT | 2.39% |