

Investor interest in dividend ETFs is increasing according to recent analysis. A monthly update from State Street Investment Management's Global Head of Research Strategists Matt Bartolini assessed a few notable trends including dividend ETF flows on the rise.

A look at XUDV’s 2026 performance, highlighting dividend income, selective AI exposure, sector positioning, and key contributors.

The VettaFi New Frontier U.S. Dividend Select Index (NFUS) delivered a mixed performance in March, as strong gains in energy and materials stocks were offset by weakness in several high-weight constituents. The index — tracked by the Franklin International Dividend Booster Index ETF (XUDV) through a full replication strategy — declined approximately 2.

Key Takeaways While index-based ETFs are often viewed as buy-and-hold vehicles, quarterly rebalancing ensures these portfolios undergo a strategic facelift to remain aligned with evolving market leadership and current economic realities. Quarterly rebalancing for thematic indexes captured a shift in the international exposure.

Key Takeaways The Franklin U.S. Dividend Booster Index ETF (XUDV) updated its portfolio as of March 24, 2026, rotating 13 names within its underlying index. The fund added several semiconductor and hardware names, including Micron Technology (MU) and Western Digital Corp (WDC), despite maintaining an overall underweight to Information Technology.

In the early innings of 2026, dividend exchange-traded funds (ETFs) are offering a rarified combo of performance as well as income. This places a spotlight on and the Franklin U.S. Dividend Booster Index ETF (XUDV) and the Franklin International Dividend Booster Index ETF (XIDV), which have both been strong performers to start the year.

Strong performance and dividend yields amid volatility — typically, an investor may need to sacrifice one in order to maximize the other. However, the Franklin U.S. Dividend Booster Index ETF (XUDV) is proving otherwise.

The ETF universe continued to expand in 2025, with a growing number of high-income products incorporating options strategies to enhance payouts. However, for many investors and advisors, traditional ETFs that own dividend-paying stocks remain a core component of a well-rounded portfolio.
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