As expected, dividend-focused shares have underperformed in this rising rate environment. The chart below shows a couple of broad dividend index ETFs vs the S&P500 (SPY) over the past two months.
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| Source: Ycharts |
Nevertheless on a year-to-date basis these same shares have performed about as well as the broader market. As discussed late last year (see this post), dividend shares never exhibited signs of a "crowded trade" and therefore were able to withstand this rate adjustment significantly better than fixed income products (see discussion).
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