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After the closing bell on Apr 20, International Business Machines (IBM - Free Report) reported solid first-quarter 2023 results. IBM shares gained as much as 3.5% in aftermarket hours.
This has put ETFs having the highest allocation to this tech giant in the spotlight. These funds are, namely, First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) , Democratic Large-Cap Core Fund (DEMZ - Free Report) , Morningstar Dividend Leaders Index Fund (FDL - Free Report) and VanEck Durable High Dividend ETF (DURA - Free Report) .
Earnings per share came in at $1.36, surpassing the Zacks Consensus Estimate of $1.27 but declining 3% from the year-ago earnings. Revenues grew 0.4% year over year to $14.25 billion but fell short of the consensus estimate of $14.27 billion (see: all the Technology ETFs here).
Strong demand at its consulting and software businesses drove the results. Consulting revenues increased 2.8%, while software revenues grew 2.6% from the year-ago levels.
IBM now expects sales to increase 3-5% for 2023 in constant currency, up from the previous expectation and revenues to rise at the lower end of its mid-single-digit target.
ETFs in Focus
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. It charges 50 bps in annual fees and holds about 93 securities in its basket. Of these firms, IBM takes the fifth spot, making up 7.4% of the assets (read: 5 Tech Stocks That Powered Nasdaq ETF in the First Quarter).
First Trust NASDAQ Technology Dividend Index Fund has amassed $1.7 billion in its asset base while trading in a volume of around 123,000 shares per day.
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
Invesco Dow Jones Industrial Average Dividend ETF offers exposure to dividend-paying companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 28 stocks in its basket, with IBM occupying the fourth position, accounting for 6.4%.
Invesco Dow Jones Industrial Average Dividend ETF has managed assets worth $282.4 million while trading in a volume of 40,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
Democratic Large-Cap Core Fund is the first investment product that strives to replicate the S&P 500, without the GOP. It’s a fund designed to provide similar risk and performance as the S&P 500, but it only includes companies that have made over 75% of their political contributions to Democratic causes and candidates (over the last three election cycles). Democratic Large-Cap Core Fund holds 46 stocks in its basket, with IBM occupying the second place at 5.2% of total assets.
Democratic Large-Cap Core Fund has accumulated $22.9 million in its asset base and trades in an average daily volume of 3,000 shares. It charges 45 bps in annual fees.
First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report)
First Trust Morningstar Dividend Leaders Index Fund offers exposure to stocks that have shown the highest dividend consistency and dividend sustainability by tracking the Morningstar Dividend Leaders Index. It holds 97 stocks in its basket, with IBM taking the eighth spot at 4.2% share (read: A Guide to the 10 Most-Popular Dividend ETFs).
With AUM of $5.2 billion, First Trust Morningstar Dividend Leaders Index Fund charges 45 bps in annual fees from investors and trades in a solid volume of about 991,000 shares a day. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
VanEck Durable High Dividend ETF offers exposure to high dividend-yielding U.S. companies with strong financial health and attractive valuations, according to Morningstar. It tracks the Morningstar US Dividend Valuation Index and holds 73 stocks in its basket. IBM takes the ninth spot with 4% of assets.
VanEck Durable High Dividend ETF has gathered $96.4 million in its asset base and charges 29 bps in annual fees. It trades in a volume of 10,000 shares per day on average.
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IBM Strong Q1 Earnings Put These ETFs in Focus
After the closing bell on Apr 20, International Business Machines (IBM - Free Report) reported solid first-quarter 2023 results. IBM shares gained as much as 3.5% in aftermarket hours.
This has put ETFs having the highest allocation to this tech giant in the spotlight. These funds are, namely, First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report) , Democratic Large-Cap Core Fund (DEMZ - Free Report) , Morningstar Dividend Leaders Index Fund (FDL - Free Report) and VanEck Durable High Dividend ETF (DURA - Free Report) .
Earnings per share came in at $1.36, surpassing the Zacks Consensus Estimate of $1.27 but declining 3% from the year-ago earnings. Revenues grew 0.4% year over year to $14.25 billion but fell short of the consensus estimate of $14.27 billion (see: all the Technology ETFs here).
Strong demand at its consulting and software businesses drove the results. Consulting revenues increased 2.8%, while software revenues grew 2.6% from the year-ago levels.
IBM now expects sales to increase 3-5% for 2023 in constant currency, up from the previous expectation and revenues to rise at the lower end of its mid-single-digit target.
ETFs in Focus
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. It charges 50 bps in annual fees and holds about 93 securities in its basket. Of these firms, IBM takes the fifth spot, making up 7.4% of the assets (read: 5 Tech Stocks That Powered Nasdaq ETF in the First Quarter).
First Trust NASDAQ Technology Dividend Index Fund has amassed $1.7 billion in its asset base while trading in a volume of around 123,000 shares per day.
Invesco Dow Jones Industrial Average Dividend ETF (DJD - Free Report)
Invesco Dow Jones Industrial Average Dividend ETF offers exposure to dividend-paying companies included in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It holds 28 stocks in its basket, with IBM occupying the fourth position, accounting for 6.4%.
Invesco Dow Jones Industrial Average Dividend ETF has managed assets worth $282.4 million while trading in a volume of 40,000 shares a day on average. It charges 7 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
Democratic Large-Cap Core Fund (DEMZ - Free Report)
Democratic Large-Cap Core Fund is the first investment product that strives to replicate the S&P 500, without the GOP. It’s a fund designed to provide similar risk and performance as the S&P 500, but it only includes companies that have made over 75% of their political contributions to Democratic causes and candidates (over the last three election cycles). Democratic Large-Cap Core Fund holds 46 stocks in its basket, with IBM occupying the second place at 5.2% of total assets.
Democratic Large-Cap Core Fund has accumulated $22.9 million in its asset base and trades in an average daily volume of 3,000 shares. It charges 45 bps in annual fees.
First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report)
First Trust Morningstar Dividend Leaders Index Fund offers exposure to stocks that have shown the highest dividend consistency and dividend sustainability by tracking the Morningstar Dividend Leaders Index. It holds 97 stocks in its basket, with IBM taking the eighth spot at 4.2% share (read: A Guide to the 10 Most-Popular Dividend ETFs).
With AUM of $5.2 billion, First Trust Morningstar Dividend Leaders Index Fund charges 45 bps in annual fees from investors and trades in a solid volume of about 991,000 shares a day. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
VanEck Durable High Dividend ETF (DURA - Free Report)
VanEck Durable High Dividend ETF offers exposure to high dividend-yielding U.S. companies with strong financial health and attractive valuations, according to Morningstar. It tracks the Morningstar US Dividend Valuation Index and holds 73 stocks in its basket. IBM takes the ninth spot with 4% of assets.
VanEck Durable High Dividend ETF has gathered $96.4 million in its asset base and charges 29 bps in annual fees. It trades in a volume of 10,000 shares per day on average.