Key Takeaways
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- The Franklin U.S. Dividend Booster Index ETF (XUDV) updated its portfolio as of March 24, 2026, rotating 13 names within its underlying index.
- The fund added several semiconductor and hardware names, including Micron Technology (MU) and Western Digital Corp (WDC), despite maintaining an overall underweight to Information Technology.
- XUDV continues to favor Financials and Consumer Staples to deliver “multiplied” dividend yield.
Franklin Templeton’s U.S. dividend ETF saw some notable shakeups to its portfolios following a recent index reconstitution.
The Franklin U.S. Dividend Booster Index ETF (XUDV) recently completed its quarterly rebalance, with 13 names being either added or removed from the underlying VettaFi New Frontier U.S. Dividend Select Index (NFUS). The fund currently holds 98 stocks and continues its mandate to provide “multiplied” dividend yield while mitigating concentration risks.
The March rebalance saw a notable infusion of semiconductor and hardware names into the index, including Micron Technology (MU), Western Digital Corp (WDC), Seagate Technology (STX), and Lumentum Holdings (LITE). This move suggests that the index’s unique methodology is finding yield opportunities within the tech hardware space. These additions occur even as the fund maintains an underweight to the broader information technology sector.
Other additions for the period include The Progressive Corporation (PGR), Fidelity National Information Services (FIS), and Corebridge Financial (CRBG), reflecting a tilt toward quality income-producers.
Optimizing XUDV for Enhanced Dividend Yield
To make room for these newcomers, the index dropped several notable names such as Palantir Technologies (PLTR), Dow Inc (DOW), Halliburton Company (HAL), and Pulte Group (PHM). The removal of Palantir highlights the index’s discipline in rotating out of names that may no longer meet the specific yield-to-volatility thresholds required by the index’s three-stage optimization process and market risk models. Centene Corp (CNC) and Northern Trust Corporation (NTRS) were also among the companies removed during this period.
For advisors, XUDV offers a distinct alternative to standard large-cap value funds with its $57 million in assets under management. The fund maintains a significant overweight to the financials and consumer staples sectors while remaining underweight to information technology compared to the VettaFi U.S. Equity Large-Cap 500 Index. XUDV continues to offer a strategic approach for clients seeking income without the heavy tech-concentration of the broader market.
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VettaFi LLC (“VettaFi”) is the index provider for XUDV, for which it receives an index licensing fee. However, XUDV is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of XUDV.
