At a glance
TDIV charges 0.5% a year, above the 0.29% average of the 8 funds most like it (the 8th cheapest of 9). It has $4.42B in assets, the 6th largest of that group; it paid 1.36% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +15.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds; over three years it returned +31.2% a year. At its worst it fell 30.6% in the 2020 crash (S&P 500: 33.7%) and 32.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 14 months after the lows. Its ten largest positions make up 51.6% of the fund, out of 94 in all.
The short version
First Trust NASDAQ Technology Dividend Index Fund (TDIV) tracks the Nasdaq Technology Dividend Index. The index holds up to 100 technology and telecommunications companies that pay dividends, and it weights them by the total dividends they pay. That puts steady payers such as IBM and Texas Instruments near the top. Its 0.50% expense ratio is well above broad tech funds such as XLK (0.08%). Its yield was a modest 1.36% as of October 27, 2026.
Price history
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TDIV +15.2% 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 | |
|---|---|---|---|---|---|---|
| TDIV official prospectus, to Dec 31, 2025 | — | +25.19% | — | +16.55% | +16.87% | +15.17% |
| TDIV price data to Oct 27, 2026 | +21.3% | +15.2% | +31.2% | +17.4% | +17.4% | +15.8% |
- Over the year to Oct 27, 2026, TDIV returned +15.2%, 9th of 9 among similar funds.
- Its 5-year annualized return was +17.4% and its 10-year +17.4%.
- In the 2020 COVID crash it fell 30.6% and regained its old high 5.1 months after the low.
- Its worst full calendar year was 2022 (-22.1%); its best was 2023 (+36.7%).
- The deepest fall in its price history was 32% (Jan 4, 2022 to Oct 12, 2022), recovered by Dec 11, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +21.3% | — |
| 2025 | +25.3% | +25.19% |
| 2024 | +24.4% | +24.51% |
| 2023 | +36.7% | +36.78% |
| 2022 | -22.1% | -22.14% |
| 2021 | +29.5% | +29.56% |
| 2020 | +17.5% | +17.27% |
| 2019 | +33.2% | +33.31% |
| 2018 | -3.1% | -3.01% |
| 2017 | +21.9% | +21.90% |
| 2016 | +20.2% | +19.63% |
| 2015 | -6.4% | — |
| 2014 | +15.5% | — |
| 2013 | +31.0% | — |
| 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 | Lost 30.6% over that stretch · deepest drop along the way 30.6%, back to its old high 5.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 31.8% over that stretch · deepest drop along the way 32%, back to its old high 14 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0900 | |
| 2025 | $1.3600 | +7.9% |
| 2024 | $1.2600 | +13.5% |
| 2023 | $1.1100 | -7.5% |
| 2022 | $1.2000 | +8.1% |
| 2021 | $1.1100 | +8.8% |
| 2020 | $1.0200 | +5.2% |
| 2019 | $0.9700 | -2.0% |
| 2018 | $0.9900 | +23.7% |
| 2017 | $0.8000 | +9.6% |
| 2016 | $0.7300 | +14.1% |
| 2015 | $0.6400 | -17.9% |
| 2014 | $0.7800 | +36.8% |
| 2013 | $0.5700 |
What's inside
As of Jun 30, 2026, the fund held 94 securities; the ten largest made up 51.64% of assets.
| Holding | Weight | |
|---|---|---|
| INTERNATIONAL BUSINESS MACHINES CORP | 8.09% | |
| BROADCOM INC | 7.24% | |
| MICROSOFT CORP | 7.10% | |
| TEXAS INSTRUMENTS INC | 7.06% | |
| ORACLE CORP | 5.34% | |
| TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD | 4.89% | |
| APPLIED MATERIALS INC | 3.54% | |
| QUALCOMM INC | 3.15% | |
| ANALOG DEVICES INC | 2.87% | |
| KLA CORP | 2.35% | |
| MOTOROLA SOLUTIONS INC | 2.21% | |
| COMCAST CORP | 2.11% | |
| CISCO SYSTEMS INC | 2.09% | |
| CORNING INC | 2.05% | |
| T-MOBILE US INC | 1.92% |
By country
United States 78.7%Canada 5.35%Taiwan 5.21%Netherlands 2.92%Ireland 2.27%By asset type
Stocks 99.87%By sector
Sectors of the companies held, for the 71.1% 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 added a net $57.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +15.34%, +14.07%, -6.39%.
How it works
TDIV is an index fund. It normally invests at least 90% of its net assets in the stocks of the Nasdaq Technology Dividend Index, which is owned and built by Nasdaq, Inc. To qualify, a company must be classed as technology or telecommunications under the Industry Classification Benchmark. It must also have paid a regular dividend in the past 12 months, must not have cut that dividend over the same period, and must yield at least 0.5%. From that pool, the 100 companies that paid the highest dividends per share are chosen.
Each stock's weight starts from its "dividend value": the dividends it paid over the past 12 months multiplied by its shares outstanding. Weights are then set so technology gets 80% of the index and telecommunications gets 20%. Caps limit any single stock. As of June 30, 2026, IBM was the largest holding at 8.1%, and the top 10 of 94 holdings made up 51.6% of assets.
The index is reconstituted (its membership reset) twice a year and rebalanced every quarter. The fund follows those changes shortly after they are announced, and portfolio turnover was 24%. The fund can own foreign companies through depositary receipts, which are US-traded certificates that stand for foreign shares, including companies in emerging markets. Taiwan Semiconductor was 4.9% of assets as of June 30, 2026. The fund held no derivatives.
What it really costs
- TDIV charges 0.5% a year, versus an average of 0.29% for the similar funds below (8th of 9, cheapest first).
In a retirement portfolio
It is a concentrated technology-sector fund with a one-year beta of 1.35 and a 32% peak-to-trough drop, so it fits better as a smaller add-on than as a core holding.
TDIV adds technology exposure tilted toward dividend payers, but in downturns it has behaved like a tech fund. It fell 30.6% in the 2020 COVID crash and recovered in about five months. In 2022 it dropped 32% between January 4 and October 12. It took about 14 months, until December 11, 2023, to get back to its peak. Its worst calendar year was 2022, at -22.1%. The fund launched in 2012, so it has no 2008 record. Anyone forced to sell shares in a slump like 2022 would lock in losses. The yield was 1.36% as of October 27, 2026, paid quarterly. That is too small to carry much of an income plan. The 0.50% expense ratio is also higher than most similar funds charge. Past results don't predict future ones, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want technology exposure tilted toward established dividend payers such as IBM, Texas Instruments and Oracle.
- People who like a dividend screen: the index excludes companies that cut their dividend in the prior 12 months.
- Long-term holders who can ride out sector swings like the 32% drop in 2022 and the 14-month recovery that followed.
Look elsewhere if
- Cost-focused investors: TDIV's 0.50% expense ratio compares with 0.08% for XLK and 0.09% for VGT.
- Retirees who need meaningful income: the yield was 1.36% as of October 27, 2026, paid quarterly.
- Anyone seeking broad diversification: it holds only tech and telecom stocks, and its top 10 holdings were 51.6% of assets.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| TDIV this fund | — | 0.5% | $4.42B | +15.2% | +31.2% |
| TDV ProShares S&P Technology Dividend Aristocra… | 37% | 0.45% | $277.4M | +16.6% | +22.3% |
| XLK Technology Select Sector SPDR Fund | 35% | 0.08% | $123.91B | +20.1% | +4.0% |
| SOXQ Invesco PHLX Semiconductor ETF | 32% | 0.19% | $3.00B | +60.9% | +53.6% |
| SEMI Columbia Select Technology ETF | 31% | 0.75% | $37.6M | +20.1% | +31.7% |
| SOXX iShares Semiconductor ETF | 31% | 0.35% | $47.82B | +48.5% | +44.1% |
| SMH VanEck Semiconductor ETF | 30% | 0.35% | $77.20B | +40.5% | +52.2% |
| FTEC Fidelity MSCI Information Technology Index … | 28% | 0.084% | $19.85B | +15.4% | +30.0% |
Questions investors ask
Is TDIV good for retirement income?
Only partly. TDIV paid $1.58 per share over the 12 months to October 27, 2026, a yield of 1.36%, in quarterly payments. That is a modest stream, so the fund works more as a growth holding that pays some dividends than as an income fund. Its index does screen out companies that cut their dividend in the prior 12 months. The trade-off is tech-sector swings: the fund fell 32% in 2022 and did not recover until December 2023.
What's the difference between TDIV and TDV?
Both hold dividend-paying tech stocks, and about 37% of their holdings overlap. TDIV tracks Nasdaq's Technology Dividend Index. That index weights companies by the total dividends they pay and gives telecom stocks 20%. TDV is ProShares S&P Technology Dividend Aristocrats ETF. TDV charges 0.45% versus TDIV's 0.50%, and it is much smaller: $277 million versus $4.42 billion. As of October 27, 2026, TDV led over one year (16.6% vs. 15.2%). TDIV led over three years (31.2% vs. 22.3% a year).
What are TDIV's top holdings?
As of June 30, 2026, TDIV's largest holdings were IBM (8.1%), Broadcom (7.2%), Microsoft (7.1%), Texas Instruments (7.1%), Oracle (5.3%) and Taiwan Semiconductor (4.9%). The fund held 94 stocks, and the top 10 made up 51.6% of assets. Because the index weights companies by the total dividends they pay, big dividend payers like IBM can outrank larger companies that pay less. About 79% of assets were in US companies, with Canada and Taiwan next at about 5% each.
How much did TDIV lose in 2022?
TDIV lost 22.14% in calendar 2022, according to its prospectus. That was its worst full calendar year on record. From its peak on January 4, 2022, to its low on October 12, 2022, it fell 32%. It took about 14 months, until December 11, 2023, to recover that loss. The fund then gained 36.78% in 2023. The 2022 drop shows that a dividend screen did not protect this technology fund from a sector-wide sell-off.
What is TDIV's expense ratio?
TDIV's expense ratio is 0.50% a year, according to its prospectus filed January 28, 2026, and all of it is the management fee. That is above the 0.29% average of the similar funds we compared, and it ranks 8th of 9 on cost. Broad tech index funds charge far less: XLK 0.08%, FTEC 0.084% and VGT 0.09%. TDV, the closest dividend-focused alternative, charges 0.45%. The extra cost pays for TDIV's dividend-based stock selection and weighting.