All articles tagged with #dividend etfs
The article discusses the renewed appeal of high-yield dividend ETFs in 2026, highlighting three funds, including Schwab US Dividend Equity ETF, which combines dividend growth, quality, and high yield, and may perform well if economic conditions slow down, offering attractive passive income opportunities.
The article compares two high-yield dividend ETFs, SPDR Portfolio S&P 500 High Dividend ETF and Schwab US Dividend Equity ETF, highlighting their different approaches and benefits. It suggests that investors can buy both with $100 to diversify their income portfolio, as each ETF offers unique exposure to dividend-paying stocks, with the combined approach providing broader diversification and potential risk mitigation.
Dividend-focused exchange-traded funds (ETFs) have underperformed in the current tech-driven market, with the largest dividend ETFs experiencing losses while tech stocks surged. Investors sought exposure to dividend-paying companies as a precaution during the Federal Reserve's tightening cycle, but instead ended up with underperforming stocks that were vulnerable to rising yields. The $18 billion iShares Select Dividend ETF (DVY) is down 5.4%, while the $20 billion SPDR S&P Dividend ETF (SDY) is down 3%. Some dividend ETFs have posted small gains, but overall, only $786 million has flowed into dividend ETFs this year, the smallest amount since 2006. Bond yields have presented a more reliable income stream than dividend funds, with ultra-short bond ETFs attracting $30 billion this year.