A Tech ETF to Capture Growth and Dividends

Moreover, with bond yields still hovering near historic lows and growth under pressure in Europe and Japan, many yield-hungry investors will continue to look for alternative sources for income.

Consequently, investors who want exposure to a potential rebound in earnings growth and dividend yields can look to TDIV, which tracks an index of technology dividend-paying stocks. Underlying components have paid a regular or common dividend with the past 12 months, with a yield of at least 0.5%, and have not had a decrease in dividends per share within the past 12 months.

TDIV shows a 2.46% 12-month yield. In contrast, the broader Technology Select Sector SPDR (NYSEArca: XLK) has a 1.84% 12-month yield and the SPDR S&P 500 ETF (NYSEArca: SPY) has a 2.06% 12-month yield.

SEE MORE: Tech ETFs are Credible Dividend Plays

The ETF’s top holdings include AAPL 8.4%, INTC 8.2%, Cisco Systems (NasdaqGS: CSCO) 7.9%, MSFT 7.9% and International Business Machines (NYSE: IBM) 7.8%.

Sub-sector weights include semiconductors 28.8%, telecom services 14.9%, software 14.3%, tech hardware 13.9%, communications equipment 10.6%, IT services 9.1%, wireless telecom services 4.4%, electronic equipment 1.6%, household durables 0.9% and internet software 0.9%.

For more information on the tech sector, visit our technology category.