Energy stocks boost NFUS index despite 2.1% March decline amid tech dividend shift

In March, the VettaFi New Frontier U.S. Dividend Select Index (NFUS) fell about 2.10%, weighed down by some large holdings despite strong gains in energy and materials sectors. Energy stocks led with an average 13.41% return, driven by top performers like LyondellBasell and Valero Energy. The index's quarterly rebalance introduced more technology-related dividend payers, including semiconductor and tech hardware firms, signaling a shift in dividend investing. This move aims to balance growth potential with yield, while managing volatility by replacing some traditional sectors like healthcare and industrials with financials and tech names. Investors in the Franklin International Dividend Booster ETF (XUDV) tracking NFUS should watch for impacts from concentrated mega-holdings and the growing role of tech-driven dividends going forward.