A diverse mix of ETFs outperformed in August, reflecting a potential shift in investor sentiment and market dynamics.

According to data from Morningstar Direct , the top-performing ETFs for the month included strategies focused on dividends , value , and low volatility , alongside some momentum plays.

Rob Isbitts, founder of research firm Sungarden Investment Publishing and an etf.com contributor, described August as “a tale of three parts” that contributed to the eclectic mix of top performers.

“There was that sudden drop in the first couple days of the month, which probably was a shock,” Isbitts said. “And then you had this knee-jerk, instant reaction.”

He noted that from Aug. 5 to Aug. 19, the S&P 500 rose about 8% in just two weeks, an unusually strong move. This volatility created opportunities for various strategies to outperform.

Dividend, Low Volatility Strategies Lead

Several top-performing ETFs focused on high dividend or low volatility strategies. The $6.6 billion SPDR Portfolio S&P 500 High Dividend ETF (SPYD) gained 4.5% in August, according to Morningstar Direct. It was joined by the $4 billion Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) , which returned 4.8% for the month.

“People were either going for yield, or they were going for value, or they were going for both,” Isbitts said, explaining the appeal of these strategies. “There were three factors: dividend was one, value was another, low volatility was another.”

Morningstar Direct data shows that the $802 million SPDR SSGA U.S. Large Cap Low Volatility Index ETF (LGLV) also made the top 10 list, returning 4.5% in August, further highlighting the strong performance of low volatility strategies.

Despite the shift toward defensive strategies, momentum-based ETFs also performed well. The SPDR SSGA U.S. Large Cap Low Volatility Index ETF (SEIM) led with a 5.5% return in August, Morningstar Direct reported.

“I believe it was a little bit of a happy medium,” Isbitts said, suggesting this performance might be due to a more balanced approach. “That’s the thing with ETFs. We said, okay, we're going to use a momentum factor. It kind of means you’re chasing the past, and it works.”

The $280 million Goldman Sachs Hedge Industry VIP ETF (GVIP) , which tracks popular hedge fund holdings, also made the top 10 list, returning 4.4% in August, according to Morningstar Direct.

Other notable performers include the $271 million ETC 6 Meridian Mega Cap Equity ETF (SIXA) and the $804 million ALPS O’Shares U.S. Quality Dividend ETF (OUSA) , which gained 4.2% and 3.95% respectively.

Isbitts cautioned that August’s performance doesn’t necessarily predict September’s market behavior. “The only thing we’ll learn in September is, 'was it, what I like to call another fake-out breakout in those underperforming sectors? Or is there really a turn coming?'”

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