Wall Street has been in the red since the original tariff announcement on April 2.  Over the past month (as of April 15, 2025), the S&P 500 is down 4.9%, the Nasdaq has fallen 5.5%, and the Dow is off 3.5%, due to tariff tensions. Although Wall Street ended the tariff-laden and extremely chaotic last week on a positive note, the uncertainty remains.

Many analysts think that a further retest of lows could be in the cards. Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealth, expects the S&P 500 to test new lows near the 4,835 level, as quoted on CNBC. Jefferies has become the latest research house to cut the S&P 500 target, following others like Citigroup (read: Is the Wall Street Rally Sustainable? ETFs in Focus).

Navigating Volatile Markets With Dividend ETFs

In such a volatile market, dividend ETFs normally come to rescue. The hunt for dividends in the equity market is always on, irrespective of how it is behaving. After all, who doesn’t like a steady stream of current income along with capital gains? And if investors are mired in a web of equity market uncertainty, global growth worries and geopolitical crisis, the lure for dividend investing increases further.

Investors should note that not all dividend stocks serve the same purpose. While the high-yield ones are known for offering hefty current income, stocks with dividend growth point to quality investing — a prerequisite to making money in this volatile environment.

This time, the U.S. long-term bond market has also been facing pressure, along with equities. Fears of China's treasury selling, inflation risks amid the trade war, and chances of a less-dovish Fed & basis trade unwind hit the bond market in early April (read: ETFs to Play Amid Long-Term Yields' Best Week Since 1982).

Hence, dividend investing became even more important. Several dividend-based exchange-traded funds (ETFs) beat the S&P 500 over the past month. These securities 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 dividend ETFs that produce moderate yield and have topped the S&P 500 over the past month (as of April 15, 2025). International dividend ETFs showed strength this time around.

ETFs in Focus

SPDR S&P International Dividend ETF (DWX) – Up 2.4%, Yields 3.96% Annually

The underlying S&P International Dividend Opportunities Index measures the performance of the 100 highest dividend-yielding common stocks and ADRs listed in primary exchanges of countries included in the S&P Global BMI ex U.S. The fund charges 45 bps in fees.

Siren DIVCON Dividend Defender ETF (DFND) – Up 2.2%, Yields 1.22% Annually

The underlying Siren DIVCON Dividend Defender Index capitalizes on the theory that, over time, companies that consistently grow their dividends tend to have investment returns above overall market returns, and companies that do not grow their dividends tend to have investment returns below overall market returns. The expense ratio of the fund is 1.63%.

First Trust S&P International Dividend Aristocrats ETF (FID) – Down 1.8%, Yields 4.10% Annually

The underlying S&P International Dividend Aristocrats Index measures the performance of high dividend-yielding, non-U.S. companies that have followed a managed-dividend policy of increasing or maintaining dividends for at least 10 consecutive years. The expense ratio of the fund is 0.60%.

First Trust STOXX European Select Dividend Index ETF (FDD) – Down 1.9%, Yields 6.63% Annually

The underlying STOXX Europe Select Dividend 30 Index consists of 30 high dividend-yielding securities selected from the STOXX Europe 600 Index. The expense ratio of the fund is 0.59%.

Invesco International Dividend Achievers ETF (PID) – Down 3.4%, Yields 3.73% Annually

The underlying NASDAQ International Dividend Achievers Index identifies an international group of ADR, GDR and non-US ordinary stocks that have qualified as International Dividend Achievers. These companies have increased their aggregate annual regular cash dividend payments consistently for at least each of the last five consecutive years. The fund charges 53 bps in fees.

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Siren DIVCON Dividend Defender ETF (DFND): ETF Research Reports

Invesco International Dividend Achievers ETF (PID): ETF Research Reports

SPDR S&P International Dividend ETF (DWX): ETF Research Reports

First Trust STOXX European Select Dividend ETF (FDD): ETF Research Reports

First Trust S&P International Dividend Aristocrats ETF (FID): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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