VanEck's €8.1bn Dividend Juggernaut Gets a Boost from Jobs Data, But Its $10.8m Ex-US Sibling Can't Catch a Break
Published on 07/03/2026 at 16:34 | Redaktion boerse-global.de
A disappointing US jobs report has breathed new life into dividend-paying equities, lifting VanEck's flagship income fund to within a whisker of its 12-month high. Yet the same tailwind has failed to reach the asset manager's younger, ex-US offshoot, which remains deep in the red since its April launch.
The catalyst for the latest leg higher came on Friday, when the US Labor Department reported just 57,000 new nonfarm payrolls for June, well short of the 113,000 economists had pencilled in. The unemployment rate ticked up to 4.2%. The weaker-than-expected data fanned hopes that the Federal Reserve will hold off on further tightening, a scenario that traditionally benefits interest-rate-sensitive stocks and, by extension, income-oriented strategies.
European benchmarks responded immediately. The STOXX 600 climbed 0.5% to a fresh all-time high, while the DAX added 0.9% and also set a new record. The VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF inched up 0.04% to €52.72, reflecting the broader rotation into defensive, high-dividend sectors.
That rotation is playing out in plain sight. Technology shares, particularly semiconductor names, have stumbled, while healthcare, financials and industrials — sectors heavily represented in dividend ETFs — have taken the lead. The same pattern is evident across the income fund landscape: the Schwab US Dividend Equity ETF and the Vanguard Dividend Appreciation ETF have drawn steady interest from asset managers in the first quarter of 2026, and the iShares Core Dividend ETF touched a 12-month high on 3 July.
VanEck's flagship portfolio leans on a concentrated roster of cash-rich, established names. Its top ten holdings account for 35.16% of assets, led by Verizon Communications at 4.94%, HSBC Holdings at 4.62%, Nestlé at 3.76%, and roughly 3.2% to 3.8% each in Pfizer and PepsiCo. The fund held 115 positions as of the latest reporting. Its total expense ratio stands at 0.38%, and it distributes dividends quarterly — a structure that has helped it accumulate €8.1 billion in assets under management since its launch on 23 May 2016.
Technically, the ETF sits comfortably above its key moving averages. It trades 0.77% above its 50-day moving average of €52.32 and 6.25% above its 200-day average of €49.62. The relative strength index reads 59.9, a neutral-to-positive signal with no sign of overheating. Annualised 30-day volatility is a low 9.65%, typical for a dividend-focused strategy. Over the past 12 months the fund has gained 24.22%, though it remains 3.23% below the 12-month high of €54.48 set in April 2026. The low for the period — €42.13 — dates to July 2025.
The contrast with the newer VanEck Morningstar Developed Markets ex-US Dividend Leaders UCITS ETF could hardly be starker. Launched on 17 April 2026, this accumulating fund excludes US stocks and targets roughly 100 dividend-paying companies from other developed markets. Its net asset value of $19.63 at the start of July represents a loss of 1.75% since inception. Total assets under management stand at just $10.8 million — a fraction of its sibling's heft.
Both funds share the same 0.38% total expense ratio and are built on identical index methodology. The structural difference — US inclusion versus ex-US — is the primary driver of the performance gap. The ex-US fund's accumulating share class also differs from the distributing payout policy of the flagship, a decision driven by Dutch tax regulations that make a reinvesting class less efficient in the main vehicle.
For income-oriented investors, the tale of two ETFs underscores the importance of both geography and track record. The flagship's size, history, and proximity to a record high stand in sharp relief to a newcomer that has yet to find its footing. Whether the ex-US sibling can close the performance gap as it builds a longer track record remains an open question for anyone seeking diversified non-US dividend exposure.
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