Is ProShares S&P Technology Dividend Aristocrats ETF (TDV) a Strong ETF Right Now?

Designed to provide broad exposure to the Technology ETFs category of the market, the ProShares S&P Technology Dividend Aristocrats ETF (TDV) is a smart beta exchange traded fund launched on 11/05/2019.

What Are Smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

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.

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 $262.21 million, making it one of the average sized ETFs in the Technology ETFs. This particular fund seeks to match the performance of the S&P TECHNOLOGY DIVIDEND ARISTOCRATS INDX before fees and expenses.

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.

With on par with most peer products in the space, this ETF has annual operating expenses of 0.45%.

It's 12-month trailing dividend yield comes in at 1.02%.

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 82.4% of the portfolio. Its Financials and Industrials round out the top three.

When you look at individual holdings, Microchip Technology Inc (MCHP) accounts for about 3.66% of the fund's total assets, followed by Oracle Corp (ORCL) and Broadcom Inc (AVGO).

Its top 10 holdings account for approximately 28.67% of TDV's total assets under management.

Performance and Risk

Year-to-date, the ProShares S&P Technology Dividend Aristocrats ETF has added about 13.76% so far, and is up roughly 14.62% over the last 12 months (as of 07/04/2025). TDV has traded between $62.35 and $85.41 in this past 52-week period.

TDV has a beta of 1.07 and standard deviation of 20.77% 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) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. iShares Core Dividend Growth ETF has $32.6 billion in assets, Vanguard Dividend Appreciation ETF has $93.68 billion. DGRO has an expense ratio of 0.08% and VIG changes 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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ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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