The SPDR S&P Dividend ETF has gained 12.6% year-to-date, while software stocks lag amid broader market shifts.
The SPDR S&P Dividend ETF (SDY) has risen 12.6% year-to-date, extending its lead over the iShares Expanded Tech-Software ETF, which has fallen 11.4% in the same period. The 24-percentage-point gap highlights a rotation into defensive, high-dividend stocks as software underperforms.
SDY tracks companies with 20-plus years of consecutive dividend increases, weighted by yield rather than market cap. Top holdings include Verizon (VZ) and Realty Income (O), sectors like utilities and consumer staples that thrive in slower-growth environments. Over the past decade, however, software has returned 348% versus SDY’s 146%, signaling potential vulnerability if growth reaccelerates.
Software stocks like Salesforce (CRM) and Adobe (ADBE) remain down 38% and 40% year-to-date, despite an 8% rally in June. The shift underscores investor preference for stability amid macroeconomic uncertainty.