Energy Deals, Bank Weightings and Car Warnings Keep VanEck Dividend ETF Near Record High

The VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF is hovering close to a fresh peak after a strong run this year, but the driver has shifted. A bigger bet on banks has reshaped the portfolio since June 2026, while energy names are still doing heavy lifting just as carmakers struggle to keep pace.

The fund traded at 55.39 euro, just 0.31 percent below its 52-week high of 55.50 euro, while another recent reading put it at 55.66 euro against 55.33 euro. Year to date, the ETF is up 15.3 percent, or 15.17 percent, and its 12-month gain stands at 28.75 percent, or 28.61 percent. The move has come with the ETF sitting well above its 200-day average, and technical signals are flashing caution: the 14-day RSI was 70.9 points in one reading and 70.4 in another, both levels typically seen as overbought.

Portfolio changes have been central to that performance. The financial sector now accounts for around 44 percent of the fund, after the semiannual rebalancing in June 2026 shifted exposure away from several energy names and toward higher-yielding European banks such as HSBC, BNP Paribas and Intesa Sanpaolo. HSBC has become a core position following those index changes, and the top ten holdings, including Nestlé, PepsiCo and Verizon, make up about 34.83 percent of the ETF.

This week’s earnings calendar is putting that new balance under the microscope. On Tuesday, August 4, HSBC Holdings and Pfizer are due to publish second-quarter results. Investors will be watching HSBC’s net interest income outlook and any fresh share buyback plans, while Pfizer’s report will need to answer questions about dividend coverage and revenue trends.

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

Energy names are still helping to support the fund. BP reported second-quarter 2026 adjusted replacement cost profit of 5.7 billion dollars, more than double the 2.35 billion dollars a year earlier and ahead of the 5.11 billion dollar analyst forecast. The group is also raising its quarterly dividend by 4 percent to 8.66 cents per share, reinforcing the payout appeal that makes it a key holding for income investors.

TotalEnergies has added another layer of support. On Monday, August 3, the French group said it had agreed to buy Shell’s entire onshore renewables portfolio in Europe, a 4 gigawatt asset base that includes 500 megawatts of solar and wind projects already operating or under construction. At the same time, TotalEnergies is selling half of a separate 1.2-gigawatt portfolio to KKR in a deal valuing the business at around 1.8 billion euro. The transactions underline a broader push to build integrated power businesses while protecting dividend capacity.

Not every major holding is moving in the same direction. BMW reported a 35 percent drop in net profit to 1.4 billion dollars, hit by a 30 percent slump in Chinese sales and higher raw material costs worldwide. The carmaker plans to cut around 8,000 jobs, mostly in administration and development. Jefferies kept its rating at Hold on Monday and maintained a 70.00 euro price target.

More reporting is due later in the week. Novo Nordisk is scheduled to release half-year numbers on Wednesday, August 5, and Allianz Group follows on Friday, August 7, after previously reporting record operating earnings. The next quarterly distribution from the ETF is expected in September 2026.