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Why Dividend ETFs Outperformed the S&P 500 This Week
Season 3
Episode 136
Published 2 weeks, 5 days ago
Description
In this episode, Lucas and Luna examine the stark divergence between dividend ETFs and the broader market in late July 2026. While the S&P 500 and Nasdaq fell on tech-led selling, VYM and SCHD posted solid gains. They explore the sector rotation driving this trend, the role of flat interest rates, and why dividend ETFs offer a smoother ride in turbulent markets. Specific data points: VYM up 1.4%, SCHD up 1.9%, versus S&P down 1.3% and Nasdaq down 3.5% over five days. The hosts also discuss how the Fed's steady rate and the steepening yield curve make dividend yields more attractive relative to bonds, and why investors may be rotating from growth to income. A timely look at how dividend ETFs can act as a defensive anchor in a portfolio.