The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  ProShares S&PTech Div Arstcrts ETF to a Morningstar Medalist Rating of Neutral.  The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The team managing the passive strategy earns a Below Average People Pillar. The strategy earns an Average Process Pillar rating.  Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including overall reasonable fees but is held back by a poor risk-adjusted track record.

Analyst Rating

QUALCOMM

Cognex

Texas Instruments

Microchip Technology

Amphenol

Apple

KLA-Tencor

Littelfuse

Power Integrations

Analog Devices

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. ProShares S&P Tech Div Arstcrts ETF earns an Average Process Pillar rating. 

The primary contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. A reasonable level of diversification across individual securities also supports the process. The fund's top 10 holdings account for 30% of assets. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 38%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

 This strategy leans toward smaller, deeper value companies than its average peer in the Technology Morningstar Category. Analyzing additional factors, this strategy continually held some stocks with low trading volume over the last few years. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. In the latest month, the strategy was also less exposed to the Liquidity factor compared with Morningstar Category peers. This strategy's portfolio also has had exposure to more stocks with high dividend or buyback yields over peers in these years. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. This strategy also has tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over these years. Such positions do not tend to provide much ballast for a portfolio. In recent months, the strategy also had less Quality factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology and financial services relative to the category average by 9.8 and 3.4 percentage points, respectively. The sectors with low exposure compared to category peers are communication services and consumer cyclical, underweight the average by 9.5 and 4.4 percentage points of assets, respectively. The portfolio is composed of 38 holdings and is less top-heavy than peers. Specifically, 30.4% of the strategy's assets are concentrated within the top 10 fund holdings, as opposed to the category average's 52.4%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 32% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

ProShares’s team earns a Below Average People Pillar rating. The team benefits from the fund's structure. It tracks an index, which is helpful because historical data, such as Morningstar's Active/Passive Barometer, finds that index funds have generally outperformed their active counterparts, especially over longer time periods. However, the rating is weakened by the parent firm's five-year success ratio of 27%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 58% also holds the rating back.

Below Average

People

In a competitive industry, ProShares doesn't differentiate itself enough, leading to an Average Parent Pillar rating. A strength of ProShares is that its product shelf of open-end and exchange-traded funds is, on average, offered at a minimal cost, suggesting that it considers what's best for its investor base. On average, fees for funds are in the lowest quintile of respective category peers. Looking at the firm's risk-adjusted performance, the product lineup compares similarly to competitors. Across its open-end and exchange-traded funds, the firm's average 10-year Morningstar Rating is 3.1 stars. ProShares has faced above-average manager turnover in the past five years. This is a concern, as long-term stability tends to support positive results.

Parent

ProShares S&P Technology Dividend Aristocrats ETF

TDV tracks an equal-weighted index of U.S. technology companies that have dividend growth of at least 7 years.

TDV is an ETF that tracks the performance of the S&P Technology Dividend Aristocrats Index, selecting companies with a strong dividend history in the technology sector. Dividend growth is not an effective measure of quality in technology companies, as they often prioritize reinvesting in new businesses and products. TDV has underperformed vs. other technology-focused ETFs and the broader market in the last 3 years, indicating that its dividend growth strategy may not be effective in the long term.

TDV: Tech ETF With Dividend Focus Is Not A Good Buy

The ProShares S&P Technology Dividend Aristocrats ETF (TDV) was launched on 11/05/2019, and is a smart beta exchange traded fund designed to offer broad exposure to the Technology ETFs category of the market.

Is ProShares S&P Technology Dividend Aristocrats ETF (TDV) a Strong ETF Right Now?

ProShares S&P Technology Dividend Aristocrats ETF offers exposure to technology-related companies with consistent dividend growth. Investing in dividend-paying stocks in the technology sector provides stability and passive income. TDV consists of 37 stocks, including IBM, Apple, Microsoft, Oracle, and Cass Information Systems, offering diversification within the sector.

TDV: A Dividend Spin On Tech

The cornerstone of TDV is the S&P Technology Dividend Aristocrats Index. The key issue with this vehicle is its insufficient value exposure, which is already evident from the dividend yield of just 1.42%. TDV is more of a total return play for investors seeking top-quality tech stories.

TDV: Resilient Tech Dividend Growth Stories Come With A Mediocre Yield

ProShares S&P Technology Dividend Aristocrats ETF is invested in dividend-growth stocks in technology and related industries. The TDV ETF is well-diversified across holdings, and sub-industries as well. Valuation is attractive relative to the sector benchmark, but growth, quality, historical performance and liquidity are not.

TDV: In Technology, Dividend Aristocrats Are Less Overvalued Than The Rest

Electronic equipment is the most attractive industry in an overvalued sector. Fast facts on TDV, a technology ETF mitigating risks. 8 tech stocks cheaper than their peers in August.

TDV: Technology Dashboard For August

iShares MSCI USA Quality Factor ETF

SPDR S&P Dividend ETF

Invesco S&P 500 Quality ETF

The interest rates in the United States are expected to remain higher for longer. Despite some officials seeking for a 0.25% hike in rates in June due to a solid labor market and signs of economic resilience, the decision to hold rates steady was unanimous, leading to a pause.

Quality ETFs to Shine in Second Half of 2023?

FlexShares Quality Dividend Index Fund

As expected, the Federal Reserve decided to leave interest rates unchanged in its June meeting. But chances are high that we'll see two rate hikes worth 25-bps each by the end of 2023.

Quality ETFs to Shine as More Fed Hikes Loom Despite June Pause?

SPDR Portfolio Small Cap ETF

iShares Edge MSCI Min Vol USA ETF

Vanguard High Dividend Yield ETF

The Fed is expected to take a breather at its June 13-14 meeting, leaving interest rates unchanged for the first time in over a year.

No Fed Rate Hike This Week? ETFs to Buy

Vanguard Dividend Appreciation ETF

The right income growth ETF can help you become a dividend emperor and harness the entire world to pay for your financial dreams. VIG is the gold standard of aristocrat ETFs, with the best dividend dependability record of any ETF I've seen. It never cut its annual dividend, unlike the official aristocrat-ETF.

VIG Vs. TDV: One Is The Ultimate Dividend Aristocrat ETF

ProShares S&P Technology Dividend Aristocrats ETF follows a dividend-growth, equal-weight strategy in technology. It is much cheaper than the sector benchmark regarding valuation ratios.

TDV: Technology Aristocrats With Attractive Valuation

Amplify Transformational Data Sharing ETF

Proshares Big Data Refiners ETF

Alphabet

Microsoft

Invesco PHLX Semiconductor ETF

Proshares Metaverse ETF

Wisdomtree Artificial Intelligence And Innovation Fund

Technology Select Sector SPDR Fund

Tech ETFs are likely to beat the broader market this year on the likelihood of a less-hawkish Fed ahead and banking crisis.

Fed Hike or Pause: Tech ETFs Will Likely Rule in 2023

TDV tracks 40 Technology Dividend Aristocrats that have raised dividends for at least seven consecutive years. It's a lower-risk Technology ETF that comes with a higher 0.45% expense ratio. In July, I recommend TDV as a way for dividend investors to take some risk off the table while still capturing a solid level of growth that Technology stocks offered.

TDV: Tech Dividend Aristocrats Now On Hold

Tech stocks got crushed in 2022, but they should eventually rebound.

This Tech ETF Will Expose You to Solid Companies With Less Risk

ProShares S&P Technology Dividend Aristocrats ETF is an equal-weight dividend-growth ETF in technology. The fund overweights IT services, semiconductors and electronic equipment.

TDV: The Underlying Index Looks Unattractive

SPDR S&P Kensho Future Security ETF

Invesco S&P SmallCap Information Technology ETF

Invesco S&P 500 Equal Weight Technology ETF

First Trust NASDAQ Technology Dividend Index Fund

Shares of high-growth technology companies lost trillions of market cap in the past year (based on the 12-month drop in the Nasdaq), per CNBC.

ETF Winners Amid Tech's Roller-Coaster Ride in a Year

ProShares S&P Technology Dividend Aristocrats ETF holds 40 dividend-paying technology stocks. ProShares S&P Technology Dividend Aristocrats ETF's holdings are some of the leading technology companies that can withstand market turmoil.

Technology Stocks With Dividend Growth - TDV Is Worth Considering

Invesco Dynamic Semiconductors ETF

Invesco Dynamic Networking ETF

Vanguard S&P Small-Cap 600 ETF

Industrial Select Sector SPDR Fund

SPDR S&P Retail ETF

Halloween Effect is a historically observed increase in stock prices from the month of November through the end of April.

Can ETFs Enjoy Halloween Effect Despite Rising Rate Fear?

Amplify BlueStar Israel Technology ETF

The ALPS Disruptive Technologies ETF (DTEC) is a solid offering for consideration as growthier segments of the market take off again. The disruptive tech ETF has increased 7.5% over the past five days and nearly 2% in the past one-month period.

DTEC Offers Diversification Across 10 Disruptive Tech Themes

The S&P Technology Dividend Aristocrats ETF holds 40 Technology stocks in equal weight that have consistently raised dividends for at least seven years. This dividend consistency requirement isn't nearly as strict as the 25 years required for the S&P 500 Dividend Aristocrats. However, I view this as a positive feature for this sector.

TDV: An Excellent Low-Volatility Addition

ALPS Disruptive Technologies ETF

The ALPS Disruptive Technologies ETF (DTEC) rallied 3.31% last week as technology and other growth stocks continued their momentum on easing supply constraints and commodity prices.  Since ending the first half of 2022 with the worst returns in over 50 years, stocks staged another recovery last week, with the growthiest segments of the market seeing [.

Growth and Tech Rally on Easing Supply Constraints and Commodity Prices

First Trust Nasdaq Semiconductor ETF

iShares Cybersecurity and Tech ETF

Tech stocks have been massively hurt this year due to the Fed policy tightening. But stagflation and the chances of flattening yield curve, cheaper valuation, sector's less responsiveness to inflation should cause a rebound in tech ETFs ahead.

6 Reasons Why Tech ETFs May Rebound Soon

ARK Fintech Innovation ETF

ARK Innovation ETF

ARK Web x.0 ETF

Global X Blockchain ETF

First Trust NASDAQ Cybersecurity ETF

Every tech ETF is down this year, but returns vary widely.

Best & Worst Performing Tech ETFs Of The Year

TDV invests in technology companies growing their dividends. The fund has 40 holdings and rebalance them quarterly in equal weight.

TDV Combines Technology, Dividend Growth And Equal Weight

It may surprise you that in 2021, the technology sector was the largest payer of dividends among sectors in the S&P 500 Index, according to investment research firm CFRA. SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022 Tech stocks contributed more than 17% of the overall income for the broad-market benchmark.

News for ProShares S&P Technology Dividend Aristocrats ETF ETF (TDV)