Dividend Funds Are Looking Better—Despite Higher Bond Yields

Last year, as the market collapsed, dividend funds were heroes. Meanwhile, two large dividend ETFs, the $69 billion (VIG) and the $50 billion (VYM), have gained only 7.3% and 0.9% respectively. In 2022, Vanguard High Dividend Yield lost only 0.4%, and Dividend Appreciation lost 10%.