S&P 500 Investors Play It Safe As Trump Bump Hits Crunch

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For S&P 500 stocks, Trump’s bullish streak has begun to fade. And investors are dialing down their risks as a result.

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Many of the year’s top performers actively traded diversified ETFs, such as the YieldMax Gold Miners Option Income Strategy.GDXY), Eventide High Dividend ETF (ELCV) and VictoryShares Free Cash Flow ETF (VFLO) are for investors who want to play it safe. All are up 2 percent or more this year, the SPDR S&P 500 ETF Trust (Spy) down 0.7%.

“After years of booming megacap growth stocks, investors are starting 2025 with a focus on equity-income-producing, high-quality companies,” said Todd Rosenbluth, head of research at TMX Weta Phi.

Looking for income

In an uncertain world – inflationary worries abound – few assets offer as much security as gold.

And because of its unique portfolio, the $48 million in-assets YieldMax Gold Miners Option Income ETF is holding up well. This year, ETF returns are north of 4.8%, according to Morningstar Direct. The fund sells call options on the VanEck Gold Miners ETF (GDX). Doing so allows the fund to harvest all gold miner stocks without giving up profits. “GDXY is an alternative overlay ETF that provides enhanced income,” said Rosenbluth.

The power of division

But dividends are a more primary source of income. And dividend ETFs are making gains this year as well. The $72.7 million in assets Eventide High Dividend fund has returned more than 4 percent this year. The ETF is stocked with a number of high-yielding energy and consumer stocks.

For example, it is the largest area. Williams (WMB) about 7% of the portfolio. In Tulsa, Okla. The natural gas company based in And that product is only on solid stock this year. Williams highest RS rating is 92.

Another winning approach this year is the First Trust Rising Dividend Achievers ETF (RDVY). 1.51% of the $13 billion-asset ETF. But the fund is focusing on stocks it thinks can grow dividends.

It, too, is heavily weighted in energy stocks, with 10.7% of its portfolio, according to Morningstar Direct. It is one of his possessions. EOG resources (E.O.GA Houston-based oil and natural gas retailer.

The stable income of the company allows it to pay a rich and constant dividend. The stock has an EPS rating of 85. Analysts expect the company to earn more than $11 in 2025 for the third year in a row. You think EOG Resources will yield 2.9%.

Banking on cash flow

Investors also pay attention to companies with sustainable cash-generating power. These companies are expected to throw in impressive cash profits. This somewhat insulates investors from inflation.

Take the $1.9 billion-in-assets VictoryShares Free Cash Flow ETF. Its cases combine high-quality technology stocks, such as Qualcomm (QCOM) plays with energy Chevron (CVX). Qualcomm’s earnings are very bankable. Profitability is expected to increase from 2023 to at least 2026. The stock carries an EPS rating of 96. “A high free cash flow yield is a great sign of a company’s financial strength and attractive valuation,” Rosenbluth said.

But most of it is due to inflation. As long as there is no risk of inflation, investors will continue to earn high returns. Already, the yield on the 10-year Treasury continues to rise to 5%.

“Bonds have fallen in value, which has made dividend-paying companies look relatively attractive for income purposes,” Rosenbluth said. “In particular, companies with stable and growing dividend payouts can survive during periods of market volatility.”

This year’s top US diversified ETFs

ETF	Ticker	YTD Return %

YieldMax Gold Miners Opt Inc. Str	GDXY	4.78%
High division of event	ELCV	4.11
VictoryShares free cash flow	VFLO	3.25
Invesco S&P 500 GARP	SPGP	2.90
Thrivent Small-Mid Cap ESG	TSME	2.72
First Trust Rising Dividend Achieve	RDVY	2.40
Inspire 100	The Bible	2.25
First Faith SMID Cp Rising Div Achv	SDV	2.09
Invesco S&P 500 Net Growth	RPG	2.08