Banks Open the Dividend Spigot as VanEck ETF Catches $9.3bn Tech Exodus
27.06.2026 - 03:43:25 | boerse-global.de
The rotation out of technology stocks is accelerating, but dividend-focused strategies are proving to be a haven. As investors pulled a record $9.3bn from tech funds in the week to June 24, a wave of bumper bank dividend hikes is underpinning the VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF. The fund closed at €51.91, marking a 7% gain year-to-date and a 24% surge over the past twelve months.
The catalyst is clear: all 32 major US banks passed the Federal Reserve’s annual stress test, even under a hypothetical scenario of losses exceeding $700bn. That green light has triggered a cascade of payout increases. PNC Financial led the pack with an 18% dividend boost. Morgan Stanley raised its payout by 15% and unveiled a $20bn share buyback programme. Goldman Sachs and Wells Fargo each hiked distributions by 11%, while JPMorgan Chase added a 10% dividend raise alongside a $50bn buyback. For an ETF heavily weighted toward financials, this dividend surge provides a powerful floor.
Meanwhile, the tech exodus is gathering pace. The Nasdaq Composite slid more than 1% on Friday as profit-taking hit AI darlings like Nvidia and Micron. Apple shares also softened on reports of price increases, adding to the sector’s woes. The VanEck fund, which targets the 100 highest-yielding dividend payers globally, has little exposure to low-yielding tech giants. Instead, it benefits from the capital flow into energy, industrials and REITs — precisely the sectors that dominate the Morningstar Developed Markets Dividend Leaders index.
Inflation and interest rate expectations are adding to the appeal. The core PCE price index for May held at 4.1%, the highest reading since 2023, and 9 of the 19 Fed officials see at least one more rate hike this year. Markets are pricing in a 25-basis-point increase, a scenario that tends to favour value and dividend stocks over growth. Japanese banks are also riding the tailwind: MUFG and Mizuho reported record profits for the 2025/26 fiscal year, capitalising on higher interest rates following the Bank of Japan’s policy pivot.
Technically, the ETF remains on solid ground. It trades about 5% above its 200-day moving average of €49.42. The relative strength index stands at 45.8 — neutral territory, neither overbought nor oversold. The fund is still 4.7% below its April high of €54.48, and the 30-day decline of 1.76% reflects some volatility, but the long-term uptrend is intact.
In the global dividend ETF landscape, the VanEck fund sits between two peers. The Xtrackers STOXX Global Select holds 100 positions and yields 3.7%, while the Vanguard FTSE All-World High Dividend Yield spreads across more than 2,300 stocks but yields just 2.5%. The VanEck fund’s concentration in high-conviction dividend payers, now supercharged by bank payout growth, positions it to weather the tech storm. As long as the rotation out of growth continues, the dividend spigot shows no sign of drying up.
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