Several dividend equity ETFs have delivered higher total returns than the S&P 500 ETF (SPY) year-to-date in 2026, despite offering lower distribution yields than U.S. Treasuries. For instance, Schwab U.S. Dividend Equity ETF (SCHD) is up 27.06%, and iShares Core High Dividend ETF (HDV) is up 22.04%, while SPY gained 13.31% through August 17. This performance comes as the 30-year Treasury yield touched a 19-year high of 5.323%. SCHD's outperformance was driven by holdings in semiconductors like Qualcomm and Texas Instruments, while HDV benefited from a 17% monthly spike in oil prices amid Strait of Hormuz risks.