Three Dividend ETFs Outperforming the Market in 2024
Beating the market and providing above-market income are two things that usually don’t always go together, but that’s the case with at least three ETFs in 2024. These funds are beating out the just over 23% return of the SPDR S&P 500 ETF Trust (NYSE:), which tracks the S&P 500 and provides dividend income above its 1.2% yield. Let’s dive into the details of these top-performing ETFs:
EINC Is Crushing the Market and Providing Hefty Income
- The VanEck Energy Income ETF (NYSE:) is outperforming the market by nearly double digits, with over a 33% total return in 2024.
- The fund invests in a portfolio of 31 dividend-paying stocks in both the US and Canada in the midstream part of the energy sector.
- It provides a healthy dividend income with a 30-Day SEC Yield of 3.9%.
Investing in midstream oil and gas companies can provide stable cash flows over time due to long-term contracts.
TDIV Specializes in Technology and Income
- The First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:) has provided a total return of 26% in 2024.
- It includes a 1.6% 30-day SEC Yield, beating out the SPDR S&P 500 ETF Trust.
- The fund tracks the NASDAQ Technology Dividend Index, focusing on tech and telecom companies that pay regular dividends.
Despite excluding some major tech names, TDIV is outperforming the NASDAQ 100 this year.
FDVV’s Risk-Adjusted Returns Are Impressing
- The Fidelity High Dividend ETF (NYSE:) has generated a total return of over 23% in 2024.
- It prioritizes large US stocks with significant dividends, including NVIDIA despite its low dividend yield.
- The fund has a 30-day SEC Yield of 2.7% and a Sharpe ratio of 2.40, indicating strong risk-adjusted returns.
FDVV stands out for its ability to generate good overall returns and strong risk-adjusted returns, all while maintaining a low expense ratio of 0.15%.
Analyzing the Impact
These three dividend ETFs are not only outperforming the market in 2024 but also providing investors with attractive income opportunities. By focusing on sectors like energy, technology, and high-dividend-paying stocks, these funds offer a diversified approach to generating returns while managing risk effectively.
Investors should always be mindful of fees associated with ETFs, as they can impact overall returns significantly over time. However, the combination of strong performance, dividend income, and risk management displayed by these ETFs makes them compelling options for investors looking to enhance their portfolios.