Published on 2 Jan 2024 on Zacks via Yahoo Finance

5 Dividend ETFs That Beat S&P 500 in 2023

While the stock market recorded an incredible rally in 2023, exceeding all expectations, there were valid reasons to approach the market bulls with caution. The worries over the continuation of the AI boom, global growth slowdown and still-present inflationary pressure triggered concerns in some investors’ minds about market bubbles.

There were concerns among analysts that this bullish run might be at risk as the market approached new highs. Although inflation has cooled from its highs last year, there is still a significant risk that it could rebound due to lingering economic pressures, such as rising oil prices on geopolitical concerns and still-strong labor market. If this was not enough, U.S. regional banking sector has dwindled in 2023.

No wonder, investors with lower appetite for risks will take shelter in dividend ETFs to weather afore-mentioned fears.