Seeing the S&P 500 (^GSPC 0.09%) index down more than 4% year to date is painful. But it might provide some comfort knowing that a number of areas in the market are performing much better.
The rotation that took place in U.S. equities earlier this year has made value, defensive, dividend, and small-cap stocks the new leaders. And several multiyear laggards have turned into stellar performers in 2026.
This is most evident in the dividend stock category. Of more than 120 U.S. dividend equity exchange-traded funds (ETFs), nearly 90 of them have produced positive returns year to date. A dozen are up more than 8%. Nearly all of them are outperforming the S&P 500.
With so many investors still focused heavily on megacap tech and artificial intelligence (AI) stocks, a lot of this has slipped under the radar. Many “boring” strategies and sectors of the market are doing very well once again….
