TDIV, which can allocate up to 20% of its weight to stodgy telecom names like AT&T (NYSE: T) and Verizon (NYSE: VZ), has needed less than three years on the market to amass $707 million in assets. Microsoft, IBM, Intel (NasdaqGM: INTC) and Apple combine for over a third of the fund’s weight.
The $183.9 million FlexShares Quality Dividend Defensive Index Fund (NYSEArca: QDEF) features a tech weight of 17.1%, making that the ETF’s second-largest sector allocation behind financial services. [Quality and Dividends Meet Here]
QDEF tracks the FlexShares Quality Dividend Index Fund tries to reflect the performance of the Northern Trust Quality Dividend Defensive Index, which is comprised of U.S. dividend paying large-cap stocks and optimizes its holdings based on a so-called quality factory. Apple, IBM and Microsoft are each top 10 holdings in QDEF.
QDEF’s stablemate, the $105.1 millionFlexShares Quality Dividend Dynamic Index Fund (NYSEArca: QDYN), also features tech as its second-largest sector weigh at 16.8%.
QDYN’s holdings “are selected based on expected dividend payment and fundamental factors such as profitability, solid management, and reliable cash flow,” according to FlexShares. Apple and Cisco (NasdaqGM: CSCO) are the tech names found among QDYN’s top 10 holdings.[Quality Dividends in This ETF]
FlexShares Quality Dividend Dynamic Index Fund