For instance, broad tech ETFs, like Technology Select Sector SPDR (NYSEArca: XLK) and the iShares U.S. Technology ETF (NYSEArca: IYW), follow prominent names in the technology industry, like Apple (NasdaqGS: AAPL) and Microsoft (NasdaqGS: MSFT). Alternatively, investors can consider something like the First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) that focuses on internet companies, such as Amazon (NasdaqGS: AMZN) and Facebook (NasdaqGS: FB). [Old Tech Meet’s New Tech in This ETF]
The Vanguard High Dividend Yield ETF (NYSEArca: VYM) and the iShares Select Dividend ETF (NYSEArca: DVY), two of the largest dividend funds, are now outperforming the S&P 500 this year as investors look for the extra yield despite a rallying equities market. VYM has a 2.73% 12-month yield and DVY has a 2.96% 12-month yield [Dividend Stocks, ETFs Back to Outperforming S&P 500]
Moreover, the First Trust NASDAQ Technology Dividend Index Fund (NasdaqGM: TDIV) marries the two ideas, tracking dividend-paying tech stocks. TDIV has a 2.33% 12-month yield.
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Full disclosure: Tom Lydon’s clients own shares of AAPL, MSFT, FB, AMZN, DVY.