3 “Left for Dead” Dividend ETFs That Will Make a Big Comeback in 2026

People often choose the best-performing dividend stocks over the past few years to build their portfolio. But sometimes, choosing undervalued names like Pacer Industrial Real Estate ETF (NYSEARCA:INDS), VanEck Gaming ETF (NASDAQ:BJK), and the Xtrackers S&P Dividend Aristocrats Screened ETF (BATS:SNPD) can amplify your gains. The current environment has left very few names that can be characterized as “undervalued”. These three ETFs are among the only ones that hold discounted stocks and pay you dividends for it.

ETFs with expensive stocks have done well in the past, but they don’t have as much safety. These ETFs are poised to do much better in the coming years as interest rates come down and the underlying holdings recover.

Pacer Industrial Real Estate ETF (INDS)

This little-known industrial real estate ETF is down over 31% from its 2021 peak. It has been trading sideways since 2023 due to a variety of issues. Namely, interest rates have been too high, and this hasn’t given REITs the room to recover. Remember, REITs are businesses with high debt loads and high interest rates, which puts disproportionate pressure on them.

However, these REITs have been able to avert the worst. They’ve drawn lessons from 2008, and most of them have paid growing dividends in the past couple of years and have even expanded them. The market, on the other hand, has overlooked them and chased growth stories instead.

I believe the sentiment on real estate is about to flip as soon as interest rates start getting cut aggressively. This ETF specifically focuses on industrial real estate, which gives you exposure to sectors benefiting from long-term trends like online shopping growth and demand for last-mile distribution.

I see 50-60% upside potential in the next 2 years. In the meantime, you get a 3.5% dividend yield. The expense ratio is 0.49%.

VanEck Gaming ETF (BJK)

BJK has been bouncing up and down in the same $25 to $50 band for well over a decade. It has genuine tailwinds that can finally help it soar above $50 in the coming years.

It tracks the MVIS Global Gaming Index, which has historically tracked casinos and lottery services. Recent changes have been shifting this index more and more towards online betting. It is a burgeoning industry that is getting increasingly legalized across multiple states due to the industry successfully lobbying officials.

I see more upside in this pure-play gaming ETF once the sports betting industry recovers and the index’s focus shifts more towards online gambling stocks.

BJK yields 3.59%. The expense ratio is on the higher end at 0.67%.

Xtrackers S&P Dividend Aristocrats Screened ETF (SNPD)

SNPD tracks a variety of undervalued Dividend Aristocrat Stocks, with top holdings being Franklin Resources (NYSE:BEN), Verizon (NYSE:VZ), and UGI Corp (NYSE:UGI).

The underlying index includes companies in the S&P Composite 1500 that have consistently increased dividends for at least 20 consecutive years. It focuses on higher-yielding constituents and weights them by dividend yield. It overlaps with some of the most undervalued dividend stocks in the market right now. Thus, if you’re looking for an ETF that gives you exposure to high-yield undervalued dividend stocks, SNPD is solid.

Investors have neglected high-yield Dividend Aristocrat stocks and have chosen Treasuries instead. But once interest rates come down, Treasuries will look a lot less attractive. I expect SNPD to recover quickly as dividend stocks with high yields and good cash flow will be among the first to recover.

Another plus point is that you get a very low expense ratio of just 0.15%, or $15 per $10,000, despite this being a very niche issuer. The dividend yield is 2.93%.