While the concept of dividend growth in the tech sector is still relatively new, that does not mean it will not prove rewarding for investors. The sector is one of largest contributors to S&P 500 dividend growth over the past few years and TDIV is up 24.6% since coming to market in August 2014. [Tech ETFs Become Dividend Divas]
Investors have noticed and have poured almost $464 million into the fund.
“TDIV has had a DiMaggio-esque streak of positive inflows for 20 straight months since its August 2012 inception. It even has positive inflows so far in April — a minor miracle given the recent carnage in tech. The flows have been slow and steady, which indicates that smaller (read: more stable) investors are doing the buying. That, plus all the attention social media got, is why TDIV has slipped under the radar and become a sleeper hit,” writes Balchunas.
First Trust NASDAQ Technology Dividend Index Fund
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Cisco, Microsoft and QQQ.