The ProShares S&P Technology Dividend Aristocrats ETF (TDV) made its debut on 11/05/2019, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs category of the market.
I'm generally not a fan of chasing returns, whether they be in individual stocks or in mutual funds or exchange traded funds (ETFs).
The article provides a data-driven analysis of the information technology sector, focusing on value, quality, and momentum metrics across industry subsectors. Software is closest to historical valuation and quality averages, while hardware show notable overvaluation and underwhelming quality. S&P Technology Dividend Aristocrats ETF (TDV) offers a balanced, quality-focused approach with lower volatility but has underperformed the sector benchmark XLK since inception.
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The unnamed entity is a fund that is primarily focused on the U.S. technology sector, including related companies from the communication services and consumer discretionary sectors. It has been structured to closely follow an index developed and actively managed by S&P Dow Jones Indices LLC. This index specifically identifies leading companies within these mentioned sectors, which demonstrate significant technological innovation and market presence. The fund commits to allocating at least 80% of its total assets to the securities that constitute the index, adhering to this investment strategy under normal market conditions. It is noted that the fund is non-diversified, which means it may concentrate its investments more heavily in fewer sectors or entities compared to diversified funds.
Listed below are the primary products and services offered by the fund:
These are investment vehicles targeting companies within the U.S. technology sector. The fund provides exposure to innovative tech companies that are expected to deliver growth. This includes businesses involved in software, hardware, information technology services, and other areas driving technological advancements.
This component of the fund's portfolio includes investments in selected U.S. companies outside the core technology sector but within the realms of communication services and consumer discretionary sectors that are technology-related. It envisions capturing the growth of companies that leverage technology in realms such as digital communication, entertainment, and consumer electronics, among others.
Adhering to a strategy based on an index managed by S&P Dow Jones Indices LLC, the fund aims to mirror the performance of its benchmark index. This approach means investing in the component securities of the index in proportions that closely match the index constituents. The strategy seeks to benefit from the collective growth potential of the selected companies while managing risks associated with individual stocks.