Exchange-traded funds tracking dividend and value strategies are delivering higher returns and reduced volatility compared to the broad MSCI World index, according to analysis from Handelsblatt.
The performance gap highlights a growing investor preference for income-generating assets amid persistent market uncertainty.
This shift reflects a broader trend where global equity investors are moving away from pure growth narratives.
Instead, capital is flowing into specialized MSCI World index variants that emphasize dividends and value.
The strategy aims to provide more reliable cash flows and smoother ride through market fluctuations.
The move aligns with earlier observations of investors turning to bond ETFs as core portfolio components to hedge against volatility.