ETF Evaluator: First Trust NASDAQ Technology Div ETF (TDIV) Follow This ETF

First Trust NASDAQ Technology Div ETF Overview

First Trust NASDAQ Technology Div ETF (TDIV) is a passively managed Sector Equity Technology exchange-traded fund (ETF). First Trust launched the ETF in 2012.

The investment seeks investment results that correspond generally to the price and yield (before the fund's fees and expenses) of an equity index called the NASDAQ Technology Dividend IndexTM. The fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts that comprise the index. The index is owned and was developed by Nasdaq, Inc. (the "index provider"). The index includes up to 100 technology and telecommunications companies that pay a regular or common dividend. The fund is non-diversified.

About First Trust NASDAQ Technology Div ETF (TDIV)

There are 7 members of the management team with an average tenure of 12.16 years: Daniel Lindquist (2012), Jon Erickson (2012), David McGarel (2012), Stan Ueland (2012), Chris Peterson (2016), Erik Russo (2021) and Roger Testin (2012). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and NASDAQ Technology Dividend TR USD index with a weighting of 100%. First Trust NASDAQ Technology Div ETF has 97 securities in its portfolio. The top 10 holdings constitute 51.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

First Trust NASDAQ Technology Div ETF is part of the Equity global asset class and is within the Sector Equity ETF group. First Trust NASDAQ Technology Div ETF has 18.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 81.5% There is 18.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). First Trust NASDAQ Technology Div ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $4 billion in total assets, which is above the $3 billion average for the Technology category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

TDIV Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust NASDAQ Technology Div ETF expense ratio is average compared to funds in the Technology category. First Trust NASDAQ Technology Div ETF has an expense ratio of 0.50%, which is 6% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust NASDAQ Technology Div ETF has a portfolio turnover rate of 24%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 36% for the Technology category.

Recently, in the month of June 2026, First Trust NASDAQ Technology Div ETF returned -6.4%, which earned it a grade of F, as the Technology category had an average return of 0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

First Trust NASDAQ Technology Div ETF has a trailing yield of 1.31%, which is above the 0.49% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

First Trust NASDAQ Technology Div ETF Grades

Year to date, the ETF has returned 19.5%, 15.6 percentage points worse than the category, which translates into a grade of D. The fund has returned 29.3% over the past year (grade of D), 27.2% over the past three years (grade of C) and 17.1% per year over the past five years (grade of B) and 18.2% per year over the past 10 years (grade of C).

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