Market Rotation Toward Value and Energy ETFs Outpaces S&P 500
Investors in value, dividend, small-cap, international, and defensive stocks have seen returns that exceed the S&P 500 index in 2026. This outperformance is the result of a rotation away from tech and growth stocks. The Schwab U.S. Dividend Equity ETF (SCHD) returned 12.4% YTD as of April 7, 2026. The State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) returned 43.4% YTD. The iShares MSCI South Korea ETF (EWY) return was 30.8% YTD. These returns follow a period where these asset classes were out of favor prior to 2026.
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