Markets· August 16, 2026 at 01:27 p.m.
Three Dividend ETFs Offer Income Without Sacrificing AI Exposure
Key takeaways
- FDVV holds NVIDIA at nearly 7% of net assets
- BALI writes covered calls against similar positions to produce a 7-8% monthly yield
- DGRW screens the U.S. large-cap universe for return on equity, return on assets, and expected earnings growth
In a bid to keep pace with the tech-heavy market, three dividend exchange-traded funds (ETFs) have adopted unique strategies that prioritize artificial intelligence (AI) stocks while still providing income for investors. These ETFs are Fidelity High Dividend ETF (FDVV), WisdomTree U.S. Quality Dividend Growth Fund (DGRW), and iShares U.S. Large Cap Premium Income Active ETF (BALI).
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FDVV holds NVIDIA at nearly 7% of net assets, while BALI writes covered calls against similar positions to produce a 7-8% monthly yield. SCHD and VYM screen out most Magnificent Seven stocks on yield grounds, leaving dividend investors overweight utilities while missing AI-driven market gains.
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According to the fund's NPORT filing dated April 30, 2026, NVIDIA accounts for 6.84% in FDVV, with a combined Magnificent Seven exposure of roughly 20% of net assets. DGRW screens the U.S. large-cap universe for return on equity, return on assets, and expected earnings growth, then weights by cash dividends paid.
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