At a glance
KNGZ charges 0.5% a year, above the 0.15% average of the 8 funds most like it (the 8th cheapest of 9). It has $62.1M in assets, the 8th largest of that group; it paid 2.47% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +23.6% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +22.3% a year. Its ten largest positions make up 34.5% of the fund, out of 98 in all.
The short version
First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ) tracks the S&P 500 Sector-Neutral Dividend Aristocrats Index. The index holds about 100 S&P 500 companies with long records of steady or rising dividends, weighted by dividend yield within each sector. Its sector weights mirror the S&P 500, so it holds more technology stocks than many dividend funds. Its 0.50% expense ratio is well above the 0.15% average for similar funds.
Price history
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KNGZ +23.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KNGZ official prospectus, to Dec 31, 2025 | — | +13.98% | — | +10.39% | — | +10.17% |
| KNGZ price data to Oct 27, 2026 | +23.4% | +23.6% | +22.3% | — | — | +20.0% |
- Over the year to Oct 27, 2026, KNGZ returned +23.6%, 4th of 9 among similar funds.
- Its worst full calendar year was 2024 (+11.0%); its best was 2025 (+14.3%).
- The deepest fall in its price history was 19.7% (Nov 25, 2024 to Apr 8, 2025), recovered by Jul 3, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +23.4% | — |
| 2025 | +14.3% | +13.98% |
| 2024 | +11.0% | +11.10% |
| 2023 | — | +9.70% |
| 2022 | — | -7.34% |
| 2021 | — | +27.34% |
| 2020 | — | +6.61% |
| 2019 | — | +26.82% |
| 2018 | — | -6.47% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Oct 3, 2023 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Not in the price data, which starts Oct 3, 2023 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7300 | |
| 2025 | $0.9700 | +18.3% |
| 2024 | $0.8200 |
What's inside
As of Jun 30, 2026, the fund held 98 securities; the ten largest made up 34.47% of assets.
| Holding | Weight | |
|---|---|---|
| QUALCOMM INC | 4.29% | |
| HEWLETT PACKARD ENTERPRISE COMPANY | 4.28% | |
| TEXAS INSTRUMENTS INC | 4.26% | |
| HP INC | 4.08% | |
| MICROCHIP TECHNOLOGY INC | 3.62% | |
| INTERNATIONAL BUSINESS MACHINES CORP | 3.47% | |
| VERIZON COMMUNICATIONS INC | 3.20% | |
| OMNICOM GROUP INC | 2.46% | |
| COMCAST CORP | 2.41% | |
| ACCENTURE PLC | 2.40% | |
| BEST BUY CO INC | 2.13% | |
| ANALOG DEVICES INC | 1.67% | |
| CORNING INC | 1.45% | |
| ONEOK INC | 1.42% | |
| FRANKLIN RESOURCES INC | 1.42% |
By country
United States 93.69%Ireland 4.57%Jersey 0.89%Bermuda 0.52%By asset type
Stocks 99.67%By sector
Sectors of the companies held, for the 70.9% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $335K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +8.32%, +5.71%, -2.29%.
How it works
KNGZ is an index fund. It invests at least 80% of its assets in the stocks of the S&P 500 Sector-Neutral Dividend Aristocrats Index, which S&P Dow Jones Indices built and owns. The fund normally holds every stock in the index at the index's weights. The index starts with the S&P 500. To qualify, a company must have kept its dividend per share the same or raised it every year for at least 15 years in a row. The remaining stocks are then ranked within their sectors by indicated annualized dividend yield, which is the current dividend rate divided by the share price.
"Sector-neutral" means each sector gets the same weight it has in the S&P 500. Sectors are defined by GICS, a standard system for sorting companies. Within each sector, higher-yielding stocks get more weight, and each stock is held between 0.25% and 4.00%. If a sector lacks enough 15-year dividend payers, the rule is relaxed, down to a minimum five-year record. The index aims for 100 stocks and held 98 as of June 30, 2026.
The index changes its member list once a year and resets weights every quarter. It also checks members monthly after dividend announcements. Portfolio turnover was 46%. The fund owns plain stocks, with no options, swaps or leverage.
What it really costs
- KNGZ charges 0.5% a year, versus an average of 0.15% for the similar funds below (8th of 9, cheapest first).
In a retirement portfolio
It pays quarterly dividends from about 100 large US companies with long dividend records, while keeping sector balance close to the S&P 500.
KNGZ's trailing 12-month yield was 2.47% as of October 27, 2026, paid quarterly. It launched in 2017, so it has no record from the 2008 crisis. During the 2020 COVID crash it lost 26.7% in the first quarter, yet it ended 2020 up 6.61%. It fell 7.34% in 2022, its weakest calendar year. In price data since October 2023, its deepest drop was 19.7%, from November 2024 to April 2025. It recovered by July 3, 2025, about 2.8 months later.
Anyone forced to sell in early 2020 would have locked in a steep loss that patient holders soon made back. The 0.50% expense ratio also reduces returns every year, compared with 0.15% for similar funds. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Dividend investors who want S&P 500-like sector weights, including a large technology slice led by Qualcomm, Hewlett Packard Enterprise and Texas Instruments.
- Investors who value a screen that favors companies with at least 15 straight years of steady or rising dividends.
- Holders comfortable with quarterly payouts and a trailing 12-month yield of 2.47% as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: the 0.50% expense ratio is ten times SPDG's 0.05% and well above the 0.15% average for similar funds.
- Investors who want monthly income, since KNGZ pays dividends quarterly.
- Those who prefer large funds: KNGZ had about $62 million in net assets as of June 30, 2026, 8th of 9 among similar funds.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| KNGZ this fund | — | 0.5% | $62.1M | +23.6% | +22.3% |
| SPDG SPDR Portfolio S&P Sector Neutral Dividend … | 51% | 0.05% | $12.5M | +19.7% | +22.9% |
| DIVB iShares Core Dividend ETF | 35% | 0.05% | $1.71B | +35.8% | +28.8% |
| SPYD SPDR Portfolio S&P 500 High Dividend ETF | 34% | 0.07% | $7.37B | +14.7% | +18.8% |
| XUDV Franklin U.S. Dividend Multiplier Index ETF | 32% | 0.09% | $73.6M | +27.7% | — |
| SCHD Schwab US Dividend Equity ETF | 31% | 0.06% | $112.34B | +38.9% | +19.9% |
| SDY SPDR S&P Dividend ETF | 29% | 0.35% | $21.39B | +21.8% | +15.5% |
| VYM Vanguard High Dividend Yield Index ETF | 27% | 0.06% | $99.19B | +19.1% | +21.2% |
Questions investors ask
Is KNGZ good for retirement income?
It may suit retirees who want moderate, quarterly dividend income from large US companies. Its trailing 12-month yield was 2.47% as of October 27, 2026, about $1.07 per share. Holdings are mostly S&P 500 companies with at least 15 years of steady or rising dividends. The tradeoffs are a 0.50% expense ratio, well above the 0.15% average for similar funds, and a 26.7% drop in the first quarter of 2020.
What's the difference between KNGZ and SPDG?
The main difference is cost. KNGZ charges 0.50% a year, while SPDR Portfolio S&P Sector Neutral Dividend ETF (SPDG) charges 0.05%. Both use a sector-neutral dividend approach, and their holdings overlapped by 51%. As of October 27, 2026, KNGZ's 1-year price return was 23.6% versus SPDG's 19.7%. Over three years, KNGZ averaged 22.3% a year versus SPDG's 22.9%. Both are small funds.
How often does KNGZ pay dividends?
KNGZ pays dividends quarterly. Over the 12 months to October 27, 2026, it paid about $1.07 per share, a trailing yield of 2.47%. Payouts depend on the companies in the index. The prospectus warns that companies don't have to keep paying dividends and may cut or stop them, so the fund's income can change from year to year.
Why does KNGZ hold so many tech stocks?
Its index matches each sector's weight to the S&P 500, and technology is a large part of that index. Within technology, the index picks dividend payers with the highest yields. As of June 30, 2026, the largest holdings were Qualcomm (4.3%), Hewlett Packard Enterprise (4.3%), Texas Instruments (4.3%), HP (4.1%), Microchip Technology (3.6%) and IBM (3.5%). The ten largest made up about 34% of the fund.
How has KNGZ performed over the long term?
In the prospectus, KNGZ returned an average of 10.39% a year over five years and 10.17% a year since its 2017 launch, both through December 31, 2025. Its calendar-year results ranged from a 7.34% loss in 2022 to a 27.34% gain in 2021. As of October 27, 2026, its price-based return was 23.4% for the year to date.