

The Technology Dividend Index ETF (TDIV) and Invesco S&P 500 Top 50 ETF (XLG) have different performance characteristics over the past ten years:
- TDIV Performance:
- Dividend Yield: TDIV offers a consistent dividend yield of around 1.4% to 1.6%, which is attractive for income-focused investors1.
- Growth Profile: Despite its dividend focus, TDIV's growth profile is weaker than other technology funds, which could result in lower total returns over the long term2.
- Sector Focus: TDIV's investment in technology dividend stocks may limit its exposure to non-dividend growth stocks that could offer higher capital appreciation2.
- XLG Performance:
- Dividend Yield: XLG has a 12-month trailing dividend yield of 0.75%, which is lower than TDIV's dividend yield but still provides some income3.
- Growth Potential: XLG's focus on large-cap blend stocks with a significant allocation to technology stocks positions it to benefit from the growth of the technology sector3.
- Sector Exposure: XLG's sector exposure is diversified, with a heavy allocation to information technology but also including telecom and consumer discretionary sectors3.
- Comparison:
- Yield: TDIV's dividend yield is higher than XLG's, which could be a significant advantage for income-focused investors.
- Growth: XLG's broader sector exposure and lack of specific dividend focus may position it better for capital appreciation, especially if the technology sector continues to grow.
- Investment Strategy: TDIV's strategy is more focused on dividend income, while XLG's strategy is more geared towards growth through exposure to a diversified technology-focused index.
Conclusion: Over the past ten years, TDIV has provided a consistent dividend yield but may have underperformed in terms of total growth due to its focus on dividend stocks. XLG, with its broader sector exposure, may offer higher growth potential but at a lower dividend yield. The choice between these ETFs depends on an investor's priorities: if dividend income is a top consideration, TDIV may be the better choice. If higher growth potential is preferred, XLG might be more suitable. However, it's important to consider that past performance is not indicative of future results, and market conditions can change, affecting the relative performance of these ETFs.
