After Comparing Every Dividend ETF That Owns the Magnificent Seven, These 3 Pay You Without Giving Up the AI Trade

Three dividend ETFs possess NVIDIA, Microsoft, Apple, and Alphabet in their top 10 holdings: Fidelity High Dividend ETF (FDVV), WisdomTree U.S. Quality Dividend Growth Fund (DGRW), and iShares U.S. Large Cap Premium Income Active ETF (BALI). These funds differ in how they generate income. FVV and DGRW screen out Magnificent Seven stocks due to low yields, while BALI sells call options against its portfolio to harvest premium.

FDVV owns 6.84% of NVIDIA, 5.69% of Apple, and 4.49% of Microsoft, with a combined exposure of roughly 20% to the top AI stocks. DGRW weights its holdings by absolute cash dividends paid, resulting in Microsoft, NVIDIA, Apple, and Alphabet among its top holdings. BALI holds NVIDIA at 7.22%, Apple at 5.78%, and Microsoft at 5.67%, among other AI stocks.

BALI's strategy includes writing call options against its portfolio, generating additional yield. While FDVV offers a 2.076% forward annualized estimate, DGRW pays monthly and has a lower expense ratio of 0.28%. Investors seeking income today and those willing to accept the capped upside of a covered-call strategy find BALI appealing. Over three years, BALI posted a 23.4% total return, outpacing FVV and DGRW.