HDV and FDL have returned 20% and 19% year to date in 2026, reversing a decade of dividend underperformance with yields near 3%. SPY's 13% gain has been left behind as concentration risk in mega-cap growth drives rotation into energy, utilities, and healthcare. DTD takes a contrarian approach, holding Microsoft and NVIDIA alongside traditional dividend payers and paying distributions monthly.
It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Dividend investing spent most of the last decade trailing growth. That has reversed in 2026. Three high-yield funds, the iShares Core High Dividend ETF (NYSEARCA:HDV), the First Trust Morningstar Dividend Leaders Index Fund (NYSEARCA:FDL), and the WisdomTree U.S.
Total Dividend Fund (NYSEARCA:DTD), are all running ahead of the S&P 500 year to date, with the leaders yielding around 3% while they do it. The SPDR S&P 500 ETF (NYSEARCA:SPY) is up 13% year to date through August 7. HDV has returned 20% over the same stretch, FDL 19%, and DTD 16%.
Each fund gets there a different way, and the differences matter more than the headline yields suggest. Concentration risk in the mega-cap growth trade has been a defining concern this year. Morningstar's 2026 outlook flagged the issue directly, noting that mega-caps have left portfolios vulnerable to concentration risk and calling out income investing as a place where yield is back but risks remain.
Higher-for-longer rates have made dividend cash flows relatively more attractive against a market where valuation multiples are stretched at the top. Rotation into utilities, energy, healthcare, and consumer staples, the classic dividend sectors, has done most of the work. Each of the three ETFs below is built around that same universe, but with meaningfully different construction rules.
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