iShares Core High Dividend ETF

HDV

Market cap $13.7B

Strong performance and dividend yields amid volatility — typically, an investor may need to sacrifice one in order to maximize the other. However, the Franklin U.S. Dividend Booster Index ETF (XUDV) is proving otherwise.

Dividend ETFs like SCHD, FDL, and HDV are outperforming AI and SaaS stocks as investors favor moderate-yielding dividend payers over high-growth tech names.

Five dividend ETFs -- DFJ, SCHD, FDL, HDV and EYLD -- have outpaced SPY in 2026 as investors rotate toward quality income plays.

Dividend stocks and defensive sectors have dramatically outperformed as investors flee AI-vulnerable and AI-spending industries, but valuations now appear stretched. Consumer staples and energy sectors trade at historically high forward P/E multiples, often exceeding the S&P 500, despite lower long-term earnings growth prospects. Materials and industrials have also become extended, with valuations reflecting significant future earnings already priced in, especially given AI infrastructure spending.

Periods of high inflation can rock the markets. Volatility can run rampant.

Dividend stocks have sharply outperformed AI-related tech stocks since November 2025, reversing a multi-year trend. I see the rally in dividend ETFs like SCHD as overextended, prompting a pause in new purchases despite recent gains. AI is likely to benefit users more than makers, with sectors like banks, energy, and consumer staples positioned as early winners.

Although recessions are normal parts of the business cycle, anyone who has lived through one can tell you it could be financially devastating.

If you're a decade shy of clocking in one last time and stepping into retirement, you probably feel excited.

I recommend HOLD for iShares Core High Dividend ETF as a defensive, low-cost, quality-dividend option amid geopolitical and policy uncertainty.

The iShares Core High Dividend ETF (HDV) made its debut on 03/29/2011, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.