Zacks highlights five sub-$50 dividend ETFs amid tech selloff

Zacks.com identified five dividend exchange-traded funds with share prices below $50 in its Analyst Blog, highlighting them as income options for investors navigating a market shift away from technology. The publication featured the Horizon Dividend Income ETF (DIVN), the Franklin International Low Volatility High Dividend Index ETF (LVHI), the Pacer Global Cash Cows Dividend ETF (GCOW), the First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ), and the Federated Hermes U.S. Strategic Dividend ETF (FDV).

According to Zacks, Wall Street experienced a difficult week as capital moved out of technology and artificial intelligence-related stocks. The Nasdaq Composite recorded its worst weekly decline since June, while the semiconductor sector faced heavy selling pressure. The firm attributed this sentiment to rising oil prices, inflation concerns, and fears regarding the debt levels of technology companies funding the AI boom. Zacks noted that U.S. wholesale inflation recorded its biggest increase since 2022, and consumer prices rose 3.7% annually in September, a figure that remained above the Federal Reserve's 2% target. The source stated that an Iran-war-led surge in energy prices added to inflationary pressures, potentially limiting the Federal Reserve's ability to ease monetary policy.

In this environment, Zacks argued that dividend investing may offer a steadier path than high-growth stocks. The publication distinguished between high-yield funds, which provide current income, and dividend growth funds, which it described as pointing to quality investing. To increase affordability and potential growth percentage, Zacks suggested low-priced ETFs. It cited an example where a $20 stock increasing by $1 represents a 5% gain, whereas a $100 stock with the same $1 move represents only a 1% gain.

The five highlighted funds all closed between $31 and $47 on October 16, 2026. The Horizon Dividend Income ETF (DIVN) closed at $31.17. This actively managed fund invests in U.S. large-cap dividend payers and sells broad-market index call options to boost income. It yields 3.89% annually, was up 3.7% over the past month, and gained 3.4% in the previous week. Its asset base exceeds $300 million.

The Franklin International Low Volatility High Dividend Index ETF (LVHI) closed at $42.80. It tracks an index of developed-market equities outside the United States with high yields and low volatility. LVHI yields 4.58% annually, was up 1.4% over the past month, and gained 2.5% last week. The fund has advanced about 15% year-to-date and holds over $6.0 billion in assets.

The Pacer Global Cash Cows Dividend ETF (GCOW) closed at $46.81. It provides exposure to global companies with high dividend yields backed by high free cash flow yield. The fund was up 2.2% over the past month and gained 3.7% last week, advancing about 12.4% year-to-date. Its asset base is over $3.5 billion.

The First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ) closed at $41.65. It tracks S&P 500 companies that have increased or maintained dividends for at least 15 consecutive years and offer high indicated annualized dividend yields relative to their sector peers. KNGZ was up 0.3% over the past month and gained 1.3% last week, with a year-to-date advance of about 15%. The fund manages over $60 million in assets.

The Federated Hermes U.S. Strategic Dividend ETF (FDV) closed at $33.25. It seeks a higher dividend yield than the broad equity market by investing in U.S. companies with dividend growth potential. In the third quarter, 12 companies in the fund announced dividend increases, with no cuts reported. FDV was up 2.6% over the past month and gained 3.4% last week, advancing about 16% year-to-date.