The Zacks Analyst Blog DWX, DFND, FID, FDD and PID
Market Overview: Wall Street is experiencing a downturn due to tariff tensions, with the S&P 500 down 4.9% and analysts predicting further declines; however, dividend ETFs are gaining traction as investors seek stable income amidst market volatility.
Dividend ETF Highlights: Several international dividend ETFs have outperformed the S&P 500 recently, including SPDR S&P International Dividend ETF and Siren DIVCON Dividend Defender ETF, which focus on high-yielding stocks and consistent dividend growth.
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Analyst Views on FDD

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- Dividend Performance: This year has been challenging for dividends overall, but certain dividend funds are performing exceptionally well.
- Investment Strategy: The key to success lies in knowing where to invest and which funds to choose for optimal dividend returns.
Market Overview: The first half of 2025 saw significant market fluctuations due to the Trump administration's trade policies, with the S&P 500 experiencing a sharp decline followed by a strong recovery led by technology stocks. Despite improvements in consumer sentiment and inflation trends, investor confidence remains fragile amid geopolitical tensions and uncertainties regarding trade and interest rates.
Dividend Investing Trends: In a volatile market, dividend ETFs have gained popularity as investors seek stable income sources. Notably, international dividend ETFs have performed well, with several funds showing substantial gains, highlighting the growing interest in quality dividend growth amidst economic uncertainty.
Investment Outlook for Europe: Wall Street strategists, including firms like JPMorgan and Citi, predict that European equities will significantly outperform U.S. stocks due to favorable economic conditions, lower inflation rates, and attractive valuations, with several European ETFs showing strong performance recently.
Economic Indicators and Policy Changes: Recent data indicates a decline in euro zone inflation, which may lead to further interest rate cuts by the European Central Bank, enhancing the investment appeal of European markets compared to the U.S., where growth forecasts have been downgraded amid policy uncertainty and rising inflation.
Investment Outlook for Europe: Wall Street strategists are increasingly optimistic about European equities, predicting they will outperform U.S. stocks by the largest margin in over 20 years due to factors like fiscal reforms, resilient corporate earnings, and more attractive valuations.
Economic Conditions Comparison: UBS highlights that Europe's economic conditions, including abundant household savings and easing monetary policy, may support stronger growth compared to the U.S., where tech-dependent indexes face challenges amidst tariff threats and market concentration issues.
Market Overview: Wall Street is experiencing a downturn due to tariff tensions, with the S&P 500 down 4.9% and analysts predicting further declines; however, dividend ETFs are gaining traction as investors seek stable income amidst market volatility.
Dividend ETF Highlights: Several international dividend ETFs have outperformed the S&P 500 recently, including SPDR S&P International Dividend ETF and Siren DIVCON Dividend Defender ETF, which focus on high-yielding stocks and consistent dividend growth.
Impact of Federal Reserve Interest Rate Cuts: A potential interest rate cut by the Federal Reserve this month could benefit borrowers but negatively affect savers, leading to lower income for investors.
Rise in High-Dividend Funds: In anticipation of falling interest rates, high-dividend exchange-traded funds have gained popularity, attracting $4.5 billion in new investments during July and August.








