The NASDAQ Technology Dividend Index Fund tries to reflect the performance of the NASDAQ Technology Dividend Index, which uses a modified market capitalization weighting methodology to allocate 80% in tech securities and 20% in telecom stocks, along with a cap to prevent concentrations in large stocks. TDIV has a 0.50% expense ratio.

“Given that Internet usage and demand for products such as mobile phones, semiconductors and computer devices are growing rapidly, and the technology industry’s dividend growth rate has outpaced all other sectors over the past seven years, we believe this is an ideal time to invest in the technology field,” Ryan Issakainen, ETF Strategist at First Trust, said in the press release.

The fund has 59 holdings. Top holdings include Qualcomm (NasdaqGS: QCOM) 7.7%, Microsoft (NasdaqGS: MSFT) 7.4%, International Business Machines (NYSE: IBM) 7.3%, Intel (NasdaqGS: INTC) 7.3% and Cisco (NasdaqGS: CSCO) 6.8%. The top five components provide yields ranging from about 1.4% to 3.2%.

“According to Moody’s, it is projected that technology firms will pay out $26 billion in dividends in 2012,” Issakainen added.

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Max Chen contributed to this article.