The S&P 500 has been a reliable index for building exposure to U.S. stocks for years, and for good reason. It’s a valuable barometer for investors who want to make sure they are tracking large-cap U.S. equities.
Key Takeaways:
- The Franklin U.S. Dividend Booster Index ETF (XUDV) is currently outpacing the S&P 500 on a total return basis, up 25.43% YTD as of October 23, 2026.
- XUDV invests in dividend-paying U.S. equities, using an index that applies a three-stage optimization process paired with market risk models.
- Given the current need for income and equity market engagement alike, XUDV will likely offer a strong use case in portfolios to navigate the coming months.
That said, finding a strategy that can beat the S&P 500 is oftentimes both a common and valuable goal to have. Naturally, beating the market can help advisors and investors build up stronger returns and better meet their financial goals.
Here’s an ETF that is currently doing that: the Franklin U.S. Dividend Booster Index ETF (XUDV). Year to date, XUDV is up 25.43%, as of October 23, 2026. Meanwhile, the S&P 500 is up 11.95%, as of October 22, 2026.
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Diligent Dividends
So, how has XUDV been able to outperform the S&P 500 thus far? To start, the fund uses the VettaFi New Frontier U.S. Dividend Select Index as its index of choice.
This VettaFi index is built to provide stronger dividend yield than what the traditional U.S. large-cap market can offer. To do so, the index operates with a three-stage optimization process and market risk models. In theory, this allows for a strong balance between yield, total return, and risk management.
Being a dividend fund, XUDV’s report card isn’t limited to total return, either. The fund boasts attractive income potential, with a 30-day SEC yield of 4.54%, as of September 30, 2026.
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Furthermore, XUDV is pushing ahead of the S&P at a time when many investors are seeking to reconstruct their income exposure within their portfolios. With interest rates now on the rise, the roles of many traditional bond strategies now have to be reevaluated.
Divesting from bonds isn’t the only advantage XUDV brings to the table, either. Equity valuations remain high right now, and it makes it rather difficult for investors to stay out of U.S. stocks. As such, a fund like XUDV that locks in income and total return via equity participation can offer a potent use case — especially if it continues to beat the S&P 500.
For more news, information, and analysis visit the Thematic Investing Content Hub.
VettaFi LLC (“VettaFi”) is the index provider for XUDV for which it receives an index licensing fee. However, XUDV is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of XUDV.
Originally posted on ETF Trends
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