TDV vs XLK

TDVCProShares S&P Technology Dividend Aristocrats ETF

XLKAState Street Technology Select Sector SPDR ETF

In short

TDV Tech, filtered down to the companies that have raised their dividend seven years running. TDV equal-weights roughly 40 of them, so no single mega-cap runs the show, and it's the only ETF built on this S&P index.

XLK A 1998 original: XLK owns the technology slice of the S&P 500, about 70 names, for eight basis points. Big, heavily traded, and top-heavy by design, with quarterly caps the only brake on the giants at the top.

Stated mandate

TDV The fund seeks to track the S&P Technology Dividend Aristocrats Index before fees and expenses.

XLK The fund seeks to track the price and yield performance of the Technology Select Sector Index before expenses.

Why people hold it

• TDV ProShares bills it as the only ETF tracking the S&P Technology Dividend Aristocrats Index, a niche no rival has copied since its 2019 launch.proshares.com
• The index equal-weights its members and reweights quarterly, a different shape from cap-weighted tech funds where a few giants dominate.spglobal.com
• Membership requires at least seven straight years of dividend increases, screening toward established, cash-generating tech rather than story stocks.spglobal.com
• Concentrated by design at roughly 40 names, and it pays shareholders quarterly.

• XLK Costs 0.08% a year against a roughly 0.40% median for broad tech funds, tying FTEC as the cheapest of the category's top-rated names and undercutting VGT's 0.09%.
• One of the largest and most actively traded funds in the tech aisle, so entering or exiting rarely means fighting the order book.
• Running since December 1998 and dead simple: the tech sector of the S&P 500, spanning software, semiconductors, hardware, communications equipment and IT services. Pays quarterly.ssga.com

Worth knowing

• TDV At 0.45%, it costs more than plain tech beta: XLK and FTEC run 0.08% and VGT 0.09%. You're paying for the dividend-growth screen.
• The dividend rule excludes tech's non-payers and newer initiators, so some of the sector's biggest headline names simply can't be in here.spglobal.com
• Thinly traded next to the cohort's giants, so spreads can be wider. Also reaches beyond GICS tech into payments and interactive media names.spglobal.com

• XLK Top-heavy by construction. About 70 stocks, and the index only trims its biggest weights at quarterly rebalances to stay inside fund diversification limits.spglobal.com
• The universe is S&P 500 tech only. Smaller tech companies outside the big index are out, and the Select Sector funds split the S&P 500 up, so some familiar names sit in other sector funds.ssga.com
• It is one sector with no ballast from the rest of the market, so a tech drawdown lands here in full.

Full TDV profile⁠

Full XLK profile⁠