{
  "id": 19469305,
  "title": "History Says Dividend ETFs Can Protect Your Portfolio if a Stock Market Slump Is Coming",
  "url": "https://urgent.news/2026/11/11/history-says-dividend-etfs-can-protect-your-portfolio-if-a-stock",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-11T08:15:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/11/history-says-dividend-etfs-can-protect-your-portfolio-if-a-stock-market-slump-is-coming/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "The S&P 500 index, which is currently near record highs, may be heading for a market downturn. This sentiment is understandable given the plethora of economic and geopolitical risks. In particular, tech stocks have been struggling recently. For those who are concerned, dividend ETFs have historically outperformed during market slumps. However, the main advantage of owning dividend ETFs during a downturn may be emotional, rather than financial.\n\nDuring the 2022 bear market, the S&P 500 index fell by 25%, while dividend growth-focused Schwab U.S. Dividend Equity ETF (SCHD +0.51%) dropped just slightly over 20%. Similarly, yield-focused Vanguard High Yield Dividend ETF (VYM +0.45%) and Invesco High Yield Equity Dividend Achievers ETF (PEY +0.04%) both lost around 18%. Although this may not appear to be significant protection, these ETFs still outperformed during a bear market.\n\nOne of the key benefits of dividend ETFs is that they allow investors to focus on dividends rather than stock prices. Invesco High Yield Equity Dividend Achievers ETF, for instance, pays monthly dividends, which can provide additional distractions and help investors stay invested during volatile periods. By ignoring falling stock prices and focusing on dividends, investors can maintain their investment strategy and potentially build long-term wealth.\n\nFurthermore, reinvesting dividends in a bear market can be an automatic way to buy more of the ETFs when prices are lower. This contrarian buying strategy, often advocated by Wall Street, can lead to increased investment when the market is at its lowest. While dividend ETFs may fall during a downturn, historical evidence suggests they tend to lose less value than the broader market.\n\nUltimately, the most significant advantage of dividend ETFs during a market slump may be the emotional benefit of focusing on dividend checks instead of stock prices. As history shows, maintaining a calm and composed mindset while others are panicking can be more important than the actual financial gains. For long-term investors, sleeping well at night and staying invested can be a powerful tool for building wealth.",
  "summary": "During the 2022 bear market, these dividend ETFs outperformed the S&P 500, but the bigger benefit may be emotional.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}