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Dividend ETFs Take the Lead in Early 2026 as Value Outperforms

Fund fees, sector tilts plus dividend screens are driving performance.

Overview

  • iShares Core High Dividend ETF is up nearly 12% year to date with a roughly 2.96% yield, reflecting gains in staples, healthcare and utilities alongside a sizable 26% energy stake.
  • Vanguard High Dividend Yield ETF has risen about 5% this year versus a flat S&P 500, helped by Broadcom’s blowout results with revenue up 29% and net income up 34%.
  • Structural contrasts are shaping outcomes: VYM charges 0.04% with hundreds of holdings, HDV holds about 74 stocks at 0.08% with heavy energy and defensive exposure, and FDVV costs 0.15% with a technology tilt.
  • Fidelity High Dividend ETF has delivered stronger recent returns than HDV, led by top positions in Nvidia, Apple and Microsoft that lift technology to roughly a quarter of assets.
  • Oil-price whipsaws tied to Iran and Venezuela headlines underscored energy risk, yet HDV’s quality tilt and lower beta helped it close flat through a sharp two-day swing.