The VettaFi New Frontier U.S. Dividend Select Index (NFUS) delivered a mixed performance in March, as strong gains in energy and materials stocks were offset by weakness in several high-weight constituents. The index — tracked by the Franklin International Dividend Booster Index ETF (XUDV ) through a full replication strategy — declined approximately 2.10% for the month despite pockets of notable outperformance.
Energy Dominates Amid Concentrated Gains
March’s upside within the portfolio was driven largely by cyclical sectors, with energy stocks leading the charge. Of the 20 constituents that posted positive returns, a significant share came from energy and materials. Top performers included:
- LyondellBasell Industries NV (LYB) (40.06%)
- Valero Energy Corp. (VLO) (20.74%)
- Phillips 66 (PSX) (18.05%)
- EOG Resources Inc. (EOG) (16.51%)
- ConocoPhillips (COP) (16.34%)
The energy sector overall posted an average return of 13.41%, with 10 constituents finishing the month in positive territory. Outside of cyclicals, select consumer names such as Best Buy Co. Inc. (BBY) (3.60%) and Target Corporation (TGT) (6.51%) contributed modest gains.
March Rebalance Reflects Methodological Shift
The NFUS index’s quarterly rebalance introduced meaningful changes, reflecting an evolution in dividend investing toward technology-adjacent names.
The additions point to an increased allocation toward semiconductor and data infrastructure firms — an emerging class of dividend payers — while exits from healthcare and industrials suggest a recalibration of the risk/income balance.
See More: Why This International Dividend ETF Is Outperforming in 2026
| Action | Company Name | Ticker | Sector Focus |
|---|---|---|---|
| Additions | Corebridge Financial | CRBG | Financials |
| Fidelity National Information Services | FIS | Financials | |
| Lumentum Holdings Inc. | LITE | Tech Hardware | |
| Micron Technology Inc. | MU | Semiconductors | |
| Seagate Technology | STX | Tech Hardware | |
| The Progressive Corporation | PGR | Financials | |
| Western Digital Corporation | WDC | Tech Hardware | |
| Removals | Centene Corporation | CNC | Healthcare |
| Dow Inc. | DOW | Materials | |
| Halliburton Company | HAL | Energy | |
| Northern Trust Corporation | NTRS | Financials | |
| Palantir Technologies Inc. | PLTR | Software | |
| PulteGroup Inc. | PHM | Consumer Discretionary |
Corporate Actions & XUDV Implications
March also saw 41 recorded corporate actions, nearly all of which were standard dividend distributions.
For investors in XUDV, three themes may now define the outlook:
- Sensitivity to Mega-Holdings: As seen in the drag from UPS and Kraft Heinz, where concentrated weight distribution can meaningfully impact overall performance.
- Tech-Driven Yield: The inclusion of Micron (MU) and Seagate demonstrates the methodology’s systematic capture of next-generation yielders that offer growth potential alongside payouts.
- Preserving Yield: Trading out of names like Halliburton for financials like Progressive demonstrates how the index’s methodology seeks to manage volatility without sacrificing the headline yield.
March underscored the evolving nature of dividend investing. While traditional Energy exposures delivered the muscle, index-level performance was ultimately dictated by concentration risk and the ongoing rotation into tech-oriented payers.
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