iShares Core High Dividend ETF Quietly Outperforms S&P 500 in 2026

The Motley Fool··Read original
2▲3 ▼0Impact / 5
Summary · why it matters

The iShares Core High Dividend ETF has gained more than 15% this year, outpacing the S&P 500's 9% return through the first half of 2026. The ETF's outperformance has been driven by its higher exposure to high-yielding energy stocks like ExxonMobil and Chevron, which rallied amid the Iran war, as well as its significant concentration in healthcare stocks such as AbbVie and Merck. AbbVie reported a 12.4% increase in first-quarter revenue and agreed to acquire Apogee Therapeutics for $10.9 billion, while Merck saw 5% sales growth and acquired Terns Pharmaceutical for $6.7 billion. The fund, which tracks the Morningstar Dividend Yield Focus Index, holds 75 high-quality, high-yielding U.S. dividend stocks and currently offers a 2.9% dividend yield, nearly three times the S&P 500's 1.1% yield.

Impact on assets 8

Biotech & Genomic Medicine▲
AbbVie Inc
ABBV
▲ PositiveCapitalrelevance

AbbVie reported 12.4% revenue growth and agreed to acquire Apogee Therapeutics for $10.9 billion.

Merck & Company Inc
MRK
▲ PositiveCapitalrelevance

Merck saw 5% sales growth and acquired Terns Pharmaceutical for $6.7 billion.

Energy▲
Consumer Discretionary▲
Critical Materials & Supply Chain▲
Cloud & Digital Infrastructure▲
Energy Transition & Power Demand▲

Off-coverage companies 1

Terns Pharmaceuticals, Inc.i
Private▲ PositiveCapitalrelevance

Terns Pharmaceuticals is being acquired by Merck for $6.7 billion.