Low Costs and Strict Dividend Filters Drive VanEck’s €7.5bn ETF Toward Record Territory

VanEck's dividend ETF reaches €7.5 billion, boasting a 5-star Morningstar rating, 0.38% expense ratio, and 19.55% 12-month return, while signaling potential overheating with RSI at 83.8.

The VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF has amassed €7.5 billion in net assets as of May 8, 2026, a clear signal of the appetite for income strategies that pair high payouts with quality screening. The fund trades at €52.05, scraping beneath its 52-week high of €52.93, and has gained 7.63% since the start of the year. Over the past twelve months, the return stands at 19.55%.

The strong run has pushed the relative strength index (RSI) to 83.8, a level that typically warns of short-term overheating. The ETF currently sits 8.34% above its 200-day moving average, underscoring the momentum that has attracted steady inflows.

Morningstar’s Top Mark for Cost Efficiency

Morningstar awards the fund its highest five-star rating, driven by risk-adjusted returns that have consistently placed it among the leaders in its peer group. A key factor is the expense ratio of 0.38% per year, well below the category median of 1.06% for global equity income funds. Every basis point saved flows directly to the investor’s yield – a critical advantage in a dividend-oriented vehicle.

The underlying index employs a two-step screen to avoid so-called dividend traps. First, a stock’s trailing twelve-month dividend per share cannot be lower than its level five years ago. Second, the expected payout ratio must stay under 75%. Only after passing those tests do the highest-yielding names make the cut. The portfolio is rebalanced semi-annually in June and December, with weight caps of 5% for individual stocks and 40% per sector.

Energy Giant Leads the Pack

The fund holds 102 positions, with the heaviest allocation to financials, energy, and healthcare. Top holdings include Exxon Mobil, Verizon Communications, TotalEnergies, Nestlé, and Pfizer. Exxon Mobil alone illustrates the strategy’s appeal: the oil major has raised its dividend for 44 consecutive years and recently declared a quarterly payout of $1.03 per share. The ex-dividend date is May 15, with payment scheduled for June 10. In the first quarter, Exxon returned $9.2 billion to shareholders in total.

These quarterly distributions flow to the ETF’s investors in March, June, September, and December. Over the past twelve months, the fund distributed €1.74 per share. The average dividend growth of its holdings over the last three years has been nearly 17%, providing a rising income stream.

A New Sibling Without US Exposure

VanEck expanded its dividend lineup in April with the launch of the Developed Markets ex-US Dividend Leaders UCITS ETF, an accumulating share class that excludes American equities. The move addresses a structural quirk: the main fund is domiciled in the Netherlands, a structure that benefits Dutch investors on withholding taxes but prevents an accumulating variant. The new vehicle offers investors outside the US a way to bet on developed-market dividends without the same tax implications.

June brings a double event for the flagship ETF: the regular index rebalance coincides with the next quarterly payout. After such a strong rally, the market will watch closely which stocks gain or lose weight in the reshuffled portfolio. The overbought technical reading adds a note of caution, but the combination of low costs, rigorous dividend filters, and a €7.5bn asset base suggests the appetite for this income vehicle shows no signs of fading.