Microsoft (NasdaqGS: MSFT) is the ETF’s third largest holding at 8%. “The company’s core business remains solid, driven by still-healthy enterprise IT spending as well as the ongoing transition to Windows 7 from older versions,” S&P analyst Angelo Zino added.
The fund also allocates 15% into telecom services, including Verizon (NYSE: VZ) and AT&T (NYSE: T). These holdings add a dividend component and help diminish overall volatility in the fund.
Technology Select Sector SPDR
For more information on dividend-paying funds, visit our dividend ETFs category.
Max Chen contributed to this article.