3 Dividend ETFs Crushing S&P 500 in 2026
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- The S&P 500's top four sectors — technology, financials, communications, and consumer discretionary — account for roughly 65% of the index and are all down between 4.9% and 10.8% year to date, per the article.
- Schwab U.S. Dividend Equity ETF (SCHD) is up over 10% YTD with a 3.3% yield, driven by a 19.9% weighting in energy alongside concentration in consumer staples and healthcare.
- iShares Core High Dividend ETF (HDV) yields 2.8% and concentrates in ExxonMobil, Chevron, and ConocoPhillips (18.3% combined), with consumer staples names P&G, Philip Morris, Coca-Cola, PepsiCo, and Altria making up another 19.6%.
- Vanguard High Dividend Yield ETF (VYM) has the cheapest expense ratio on the list at 0.04% but the lowest yield at 2.3%, tilting toward quality tech and financials like Broadcom and JPMorgan Chase rather than energy.
- HDV and VYM are in a virtual tie on five-year total return, and both outperform SCHD over that span — even as SCHD leads on year-to-date performance.
- HDV's healthcare position is essentially just Johnson & Johnson, AbbVie, and Merck, which together account for 15.6% of the entire fund.
Why it matters: SCHD is up over 10% YTD against an S&P 500 that's down 5%, so income-oriented investors are getting paid to dodge the index's underperforming sectors — but SCHD's five-year total return actually trails HDV and VYM, meaning the 2026 outperformance is a sector-rotation story tied to a 19.9% energy bet, not a structural dividend-ETF edge.
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