Dividend Hunters Flock to VanEck’s Rules-Based ETF as €2.1bn Inflow Sparks New Accumulating Share Class

Income-focused investors have poured €2.1bn into the VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF in the first quarter of 2026, making it the best-selling fund across Europe for the period. The rush into dividend strategies is a global phenomenon: worldwide, such funds collected $24bn in the same stretch — the strongest start to any year in four years.

VanEck has responded by expanding the product line. Until late April, the fund was only available in a distributing version, partly due to Dutch tax rules. The new sibling, TDVX, launched on the last business day of the month, reinvests dividends automatically and tracks the same index. Its annual fee of 0.38% sits well below the category average of 1.06%.

The ETF’s total assets have swelled to roughly €8bn. Since its 2016 launch, the fund has never missed a quarterly payout. Over the past twelve months, investors pocketed €1.65 per share, translating into a yield of about 3.18% at current levels.

Sector allocation reveals a defensive tilt. Financials account for 31.58% of the portfolio, the largest weighting, followed by energy at 17.89% and healthcare at 15.28%. Top holdings include Exxon Mobil, Verizon and Pfizer. The index enforces a strict set of rules: only 100 stocks make the cut, each must have avoided dividend cuts over the past five years, and the expected payout ratio cannot exceed 75%.

Should investors sell immediately? Or is it worth buying VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF?

That discipline is about to face a fresh test. The US jobs report for June, due on Thursday because of the Independence Day holiday, is expected to show 172,000 new positions. A strong number could push back rate-cut expectations and put pressure on the heavily weighted financial sector. A weak reading, by contrast, would support the fund’s defensive positioning.

The ETF closed the previous week at €51.98, barely changed on Friday and just below its 50-day moving average. Year to date, it has advanced 7.49% and remains comfortably above the 200-day line. Longer term, the fund has delivered a gain of nearly 24% over the past twelve months.

The next distribution is scheduled for September. For now, investors are banking on the stability that dividend-paying stocks offer relative to the high valuation of AI plays. Should the rotation out of tech continue, the appetite for classic value stocks such as those in VanEck’s dividend leaders portfolio is likely to keep growing.