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Wall Street closed out the first half of 2024 at record highs, with expectations of further gains. The S&P 500 surged 14.5%, the Nasdaq Composite jumped 18.1%, the Dow Jones nudged up 3.8% and the Rusell 2000 inched up by only 1% during the period.
The U.S. economy staved off fears of a recession. Overall, a resilient U.S. economy,the artificial intelligence (AI) boom and strong corporate earnings led to an upbeat Wall Street. Analysts see more gains in the cards. The Fed stayed put throughout the first half of the year while cues of cooling inflation have triggered the possibility of at least one Fed rate cut in the second half.
How Did Dividend ETFs Perform in 1H?
Divined stocks normally underperform in a rising rate environment. Still, some ETFs emerged as clear winners. Higher current income and improved operational backdrop of the underlying stocks acted as a tailwind for some ETFs.
After all, high-dividend ETFs provide investors with avenues to make up for capital losses, if that happens at all. Against this backdrop, below we highlight a few of the best-performing high-dividend ETFs of the first half of 2024.
ETF Winners
U.S. Global Sea to Sky Cargo ETF (SEA - Free Report) – Up 18.2%; Yield 8.20%
Global shipping companies are known for their dividend payments. Companies like Maersk, COSCO Shipping, and Mitsui O.S.K. Lines are known for being great dividend paymasters. These companies, with their varied fleet and strategic chartering practices, are well-positioned to offer consistent dividends to their shareholders.
This is especially true given geopolitical tensions in the Red Sea, a crucial area for international trade. The tension sent ocean freight rates higher in recent months and offered a bullish case for global shipping stocks.
The fund follows a rules-based, options-trading strategy that seeks to produce high income using the Nasdaq-100 Index. Yield enhancement and volatility management are the top two benefits NUSI offers to investors. The fund charges 68 bps in fees.
Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF (QDPL - Free Report) – Up 11.4%; Yield 5.53%
The underlying Metaurus US Large Cap Dividend Multiplier Index Series 400 has two components: an S&P 500 Index component and a dividend component consisting of long positions in annual futures contracts that provide exposure to ordinary dividends paid on the common stocks of companies included on the S&P 500. The fund charges 60 bps in fees.
The ETF is actively managed and looks to achieve its investment objective by investing at least 80% of its total assets in equity securities issued by publicly listed companies in emerging foreign markets that provide high shareholder yield. The fund charges 64 bps in fees.
Fidelity High Dividend ETF (FDVV - Free Report) – Up 10.6%; Yield 3.03%
The underlying Fidelity High Dividend Index reflects the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends. The fund charges 15 bps in fees.
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5 Top-Performing High-Dividend ETFs of 1H 2024
Wall Street closed out the first half of 2024 at record highs, with expectations of further gains. The S&P 500 surged 14.5%, the Nasdaq Composite jumped 18.1%, the Dow Jones nudged up 3.8% and the Rusell 2000 inched up by only 1% during the period.
The U.S. economy staved off fears of a recession. Overall, a resilient U.S. economy,the artificial intelligence (AI) boom and strong corporate earnings led to an upbeat Wall Street. Analysts see more gains in the cards. The Fed stayed put throughout the first half of the year while cues of cooling inflation have triggered the possibility of at least one Fed rate cut in the second half.
How Did Dividend ETFs Perform in 1H?
Divined stocks normally underperform in a rising rate environment. Still, some ETFs emerged as clear winners. Higher current income and improved operational backdrop of the underlying stocks acted as a tailwind for some ETFs.
After all, high-dividend ETFs provide investors with avenues to make up for capital losses, if that happens at all. Against this backdrop, below we highlight a few of the best-performing high-dividend ETFs of the first half of 2024.
ETF Winners
U.S. Global Sea to Sky Cargo ETF (SEA - Free Report) – Up 18.2%; Yield 8.20%
Global shipping companies are known for their dividend payments. Companies like Maersk, COSCO Shipping, and Mitsui O.S.K. Lines are known for being great dividend paymasters. These companies, with their varied fleet and strategic chartering practices, are well-positioned to offer consistent dividends to their shareholders.
This is especially true given geopolitical tensions in the Red Sea, a crucial area for international trade. The tension sent ocean freight rates higher in recent months and offered a bullish case for global shipping stocks.
Nationwide Nasdaq-100 Risk-Man (NUSI - Free Report) – Up 13.8%; Yield 6.93%
The fund follows a rules-based, options-trading strategy that seeks to produce high income using the Nasdaq-100 Index. Yield enhancement and volatility management are the top two benefits NUSI offers to investors. The fund charges 68 bps in fees.
Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF (QDPL - Free Report) – Up 11.4%; Yield 5.53%
The underlying Metaurus US Large Cap Dividend Multiplier Index Series 400 has two components: an S&P 500 Index component and a dividend component consisting of long positions in annual futures contracts that provide exposure to ordinary dividends paid on the common stocks of companies included on the S&P 500. The fund charges 60 bps in fees.
Cambria Emerging Shareholder Yield ETF (EYLD - Free Report) – Up 10.8%; Yield 4.55%
The ETF is actively managed and looks to achieve its investment objective by investing at least 80% of its total assets in equity securities issued by publicly listed companies in emerging foreign markets that provide high shareholder yield. The fund charges 64 bps in fees.
Fidelity High Dividend ETF (FDVV - Free Report) – Up 10.6%; Yield 3.03%
The underlying Fidelity High Dividend Index reflects the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends. The fund charges 15 bps in fees.