Innovation drives portfolio growth, but how can investors access it while limiting concentration risk – or paying for red-hot valuations? Most investors are already significantly exposed to megacap tech names, but there are plenty more tech players out there that can deliver for investors. At the same time, investors want to stay invested but fear geopolitical risk. ETFs like the dividend tech ETF TDV combine dividends with a tech approach that performs while limiting those risks.
Key Takeaways:
- As investors look for ways to add tech upside while limiting concentration risk, TDV may have a case to make.
- By looking to dividend growth to help find opportunities, it finds firms with strong earnings growth to pay for said dividends.
- The strategy has done well this year and may be a solid option for maintaining tech exposure – a sector arguably too large to avoid
(TDV ), the ProShares S&P Technology Dividend Aristocrats ETF, charges a 45 basis point (bps) fee to track the S&P Technology Dividend Aristocrats Index. The index focuses on quality, combining tech growth potential with a disciplined financial approach that emphasizes consistent dividend growth. By leaning into the dividend tech ETF’s strategy, investors can add exposure to trends like cloud computing and the AI revolution without over indexing on the biggest names.
According to the ETF’s operator, ProShares, the index includes only companies that have increased dividends for at least 7 consecutive years. In their view, consistent dividend increases “implicitly signal” a belief that future earnings will pay for those dividend payments. In addition, the index provides investors with an equal-weighted approach, offering an additional means to limit concentration risk
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TDV, which has a long track record going back to 2019, has taken that strategy and run with it. The dividend tech ETF has returned 12% YTD, outperforming the ETF Database Tech Equities Category average in that time. It has also outperformed the average over the last five years, as well, showing its longevity. The strategy provided a 1.17% 12-month dividend yield as of March 31st, 2026, per ProShares, and has grown distributions paid to investors at a compound annual rate of 10.2% rate since its inception. For those wanting to limit concentration risk while getting tech exposure through a dividend lens, TDV should be one to watch.
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