RSPT vs TDIV

RSPTBInvesco S&P 500 Equal Weight Technology ETF

TDIVBFirst Trust NASDAQ Technology Dividend Index Fund

In short

RSPT Tech without the megacap gravity. RSPT hands each of the S&P 500's roughly 80 technology names the same slice and resets every quarter, so the sector's giants carry no more weight than its smaller names.

TDIV In 2012, "tech dividend" still sounded like a contradiction. TDIV was built around it: roughly 90 technology and telecom payers, weighted by the dollars of dividends they actually hand out rather than by market cap.

Stated mandate

RSPT The Fund is designed to follow the S&P 500 Equal Weight Information Technology Index, investing at least 90% of assets in index securities. The index equally weights information technology stocks from the S&P 500 and rebalances quarterly.

TDIV The Fund seeks to track, before fees and expenses, the price and yield performance of the Nasdaq Technology Dividend Index. It normally invests at least 90% of assets in securities comprising that index.

Why people hold it

• RSPT Equal weight by design: about 80 S&P 500 tech stocks, one identical slice each, rebalanced quarterly. No single giant steers the fund.invesco.com
• Running since 2006 and it hews closely to its index. A multi-billion-dollar fund that trades actively, so getting in and out is rarely the hard part.
• One of the stronger implementations in a crowded broad-tech aisle, with a plain index mandate and quarterly distributions.

• TDIV Weighting runs on the dollar amount of dividends paid, not market cap or yield, so the largest positions are the sector's largest payers.nasdaqomx.comftportfolios.com
• Trading since 2012, one of the first funds to treat tech as an income sleeve, and now a multi-billion-dollar fund that distributes quarterly.
• The index sets 80% technology and 20% telecom at each rebalance, with caps designed to stop the biggest names from swamping the other 90-odd holdings.ftportfolios.comsec.gov
• Volume is respectable for a niche strategy, so buying and selling shares is rarely the friction point.

Worth knowing

• RSPT 0.40% a year lands mid-pack for tech sector funds but well above cap-weighted majors like VGT (0.09%), XLK (0.08%) and FTEC (0.08%).
• Equal weighting leans on the sector's smaller members and the quarterly reset trims what ran up. Expect it to move to a different beat than cap-weighted tech.
• Still a single-sector fund: everything inside is S&P 500 information technology, with the concentration that implies.

• TDIV 0.50% a year sits above the typical index tracker in its group, where plain broad-market funds such as SCHK and SPYV charge a few basis points.
• One sector, about 90 names. Concentration is the design, and a handful of very large payers carry real weight in the outcome.sec.gov
• The dividend screen is the whole filter: tech companies that pay nothing never enter the index, and First Trust notes no holding is obliged to keep declaring dividends.sec.govftportfolios.com

Full RSPT profile⁠

Full TDIV profile⁠