These 3 High-Yield Dividend ETFs Are Crushing the S&P 500. Here's the Best Buy for April.
Why it matters: High-yield dividend ETFs offer a defensive play and outperformance during market downturns.
- Schwab U.S. Dividend Equity ETF (SCHD) is up over 10% year-to-date, boasting a 3.3% yield, largely due to its 19.9% weighting in the energy sector and strong positions in consumer staples and healthcare.
- iShares Core High Dividend ETF (HDV), yielding 2.8%, offers concentrated exposure to industry-leading dividend payers like ExxonMobil and Chevron, making it suitable for investors seeking a smaller basket of top-tier value stocks.
- Vanguard High Dividend Yield ETF (VYM) presents the lowest expense ratio at 0.04% but also the lowest yield at 2.3%, with a different sector allocation compared to the other two ETFs.
- The S&P 500 is down 5% year-to-date, with its dominant technology, financial, communication, and consumer discretionary sectors experiencing declines between 4.9% and 10.8%.
While the S&P 500 struggles, down 5% year-to-date due to underperforming tech, financial, communication, and consumer discretionary sectors, high-yield dividend ETFs with significant value and energy sector exposure are outperforming. The Schwab U.S. Dividend Equity ETF, iShares Core High Dividend ETF, and Vanguard High Dividend Yield ETF are highlighted as top buys for April, each offering distinct risk profiles and investment concentrations.
