## [# Best and Worst Performing Dividend ETFs of August 2023 ](/sections/features/best-and-worst-performing-dividend-etfs-august-2023)
# Best and Worst Performing Dividend ETFs of August 2023
Invesco’s PEY did best while the firm’s RDIV took the bottom position.
[](/authors/gabe-alpert)
[By Gabe Alpert](/authors/gabe-alpert)
Sep 08, 2023
Edited by: ETF.com Staff
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Dividend ETFs performed poorly in August, with only two ETFs producing positive returns as smaller-cap and cyclical stocks dragged down their portfolios.
The worst-performing [dividend exchange-traded fund](https://www.etf.com/topics/dividend) in the month of August was the [**Invesco S&P Ultra Dividend Revenue ETF (RDIV)**](https://www.etf.com/RDIV), which lost 5.3% on the month, while the [**Invesco High Yield Equity Dividend Achievers ETF (PEY)**](https://www.etf.com/PEY) returned 3.2%, according to etf.com data. Leveraged ETFs, inverse ETFs and ETFs with less than $50 million in assets under management were excluded from the list.
While the market, represented by benchmark [**SPDR S&P 500 ETF Trust (SPY)**](https://www.etf.com/SPY)**,** was down 1.6% in August, dividend ETFs lagged even in comparison. Only 7 out of the 48 dividend ETFs considered for this article performed better than the broader market. Small-cap stocks and cyclical stocks, stocks that are more sensitive to economic conditions, are overrepresented in dividend ETFs, and both were out of favor in August.
“The market traded in a risk-off fashion in August. Funds with a high-yielding focus would have worse performance in a risk-off environment,” Matt Bartolini, head of SPDR America research at State Street Global Advisors.
**Best Performing Dividend ETFs**
TickerFund1-Month Total ReturnAssets Under ManagementExpense Ratio[**PEY**](https://www.etf.com/PEY)[**Invesco High Yield Equity Dividend Achievers ETF**](https://www.etf.com/PEY)3.2%$1.4 Billion0.53%[**DXJS**](https://www.etf.com/DXJS)[**WisdomTree Japan Hedged SmallCap Equity Fund**](https://www.etf.com/DXJS)2.1%$51 Million0.58%[**DFJ**](https://www.etf.com/DFJ)[**WisdomTree Japan SmallCap Dividend Fund**](https://www.etf.com/DFJ)-0.1%$197 Million0.58%**Worst Performing Dividend ETFs**
TickerFund1-Month Total ReturnAssets Under ManagementExpense Ratio[**RDIV**](https://www.etf.com/rdiv)[**Invesco S&P Ultra Dividend Revenue ETF**](https://www.etf.com/rdiv)-5.3%$745 Million0.39%[**DEM**](https://www.etf.com/DEM)[**WisdomTree Emerging Markets High Dividend Fund**](https://www.etf.com/DEM)-5.2%$2.6 Billion0.63%[**FTRI**](https://www.etf.com/FTRI)[**First Trust Indxx Global Natural Resources Income ETF**](https://www.etf.com/FTRI)-4.4%$244 Million0.70%##
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## **Why Dividend ETFs Were Down**
Bartolini, who is also Managing Director at State Street, says that because dividend ETFs often weigh their holdings by dividend yield and not market cap, they hold more small- and mid-cap stocks than the broader market. Small and mid-cap stocks tend towards volatility more than larger-cap stocks, which leads risk-averse investors to shun them.
Exposure to cyclical sectors such as like finance or materials can also hurt dividend funds. Nancy Tengler, portfolio manager of the [**LAFFER|TENGLER Equity Income ETF (TGLR),**](https://www.etf.com/TGLR) a dividend-focused ETF that [launched](https://www.etf.com/sections/daily-etf-watch/latest-tuttle-etf-launch-aims-combine-dividends-growth) last month, said that the 32% weighting to financial stocks that RDIV had explains in part why it dropped over the month.
## **Two Dividend ETFs with Positive Performance**
The two dividend funds that eked out positive returns were PEY and the [**WisdomTree Japan** ](https://www.etf.com/DXJS)
[**Hedged SmallCap Equity Fund (DXJS**](https://www.etf.com/DXJS)).
PEY focuses on companies that have raised dividends for at least 10 straight years. Bartolini says that funds with a dividend sustainability focus on often end up with companies that report more regular earnings and stronger balance sheets; such businesses tend to do well in markets when investors are wary.
DXJS concentrates on small-cap stocks in Japan. While small caps weighed down U.S. dividend ETFs in August, they did relatively well in Japan for the month. The [**iShares MSCI Japan Small-Cap ETF (SCJ)**](https://www.etf.com/SCJ) fell 1.0% in August compared to the general Japan-focused [**iShares MSCI Japan ETF (EWJ),**](https://www.etf.com/EWJ) which lost 2.8%
*Contact Gabe Alpert at* [*gabriel.alpert@etf.com*](mailto:gabriel.alpert@etf.com)
[ Gabe Alpert ](/authors/gabe-alpert)
Gabe Alpert is a former data reporter at etf.com with over seven years’ experience in financial journalism. He also previously contributed reporting… [View Bio](/authors/gabe-alpert)
Related Topics [Dividend](http://www.etf.com/topics/dividend)