XUDV Tops Dividend ETFs With Tech-Light AI Infrastructure Tilt

Franklin’s U.S. Dividend Booster ETF (XUDV) rose 15.16% year-to-date and roughly 25% over the past 12 months in 2026, based on fund data. The ETF added Micron Technology and Western Digital during its March quarterly rebalance and reported a 30-day SEC yield above 4.2%.

XUDV tracks the VettaFi New Frontier U.S. Dividend Select Index. The index uses a three-stage optimization process that seeks higher dividend yield while limiting volatility and concentration. The methodology results in a portfolio that differs from traditional large-cap and technology-heavy benchmarks.

Sector weights show financials at about 25% of the fund, consumer staples near 13%, and healthcare around 8.5%. The fund maintains selective exposure to technology, focused on higher-yielding hardware and semiconductor segments rather than broad mega-cap software names.

During the March rebalance the ETF increased positions in Micron and Western Digital to raise exposure to data storage and optical infrastructure. The rebalance removed holdings that no longer met the fund’s yield-to-volatility thresholds, including Palantir Technologies, and reallocated capital to stocks with stronger income profiles.

Top holdings as of the latest reporting included United Parcel Service at about 4.63%, Best Buy at about 4.47%, Pfizer at about 4.41% and HP Inc. at about 4.20%. UPS is in the fund’s industrials allocation, HP provides targeted exposure to AI-related hardware demand, Pfizer represents the healthcare allocation, and Best Buy offers consumer discretionary exposure tied to electronics sales.

The ETF’s net expense ratio is 0.09%. Its year-to-date and 12-month returns exceeded several large-cap value and dividend benchmarks. VettaFi LLC is the index provider for XUDV and receives an index licensing fee; VettaFi is not the issuer, sponsor, endorser or seller of the ETF and has no obligation or liability related to the fund’s issuance, administration, marketing or trading.