With rate cut hopes hogging the limelight, dividend-based ETFs might finally be experiencing their comeback time.
Investors are growing fond of high-yielding equity plays such as the Vanguard High Dividend Yield ETF (NYSE:VYM) and Schwab U.S. Dividend Equity ETF (NYSE:SCHD), as new labor market reports spark bets on a pivot by the Federal Reserve. With the bond market already pricing in a rate reduction through September, and another likely in December, the old advantage of fixed-income yield may be waning, highlighting dividend-paying stocks again.
