Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the SPDR S&P Dividend ETF (SDY), a passively managed exchange traded fund launched on 11/08/2005.
Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the SPDR S&P Dividend ETF (SDY) is a smart beta exchange traded fund launched on 11/08/2005.
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
It's been three months since the Presidential election, and in that time the S&P 500 has returned a solid 6.59%. US dividend-focused ETFs have likewise lagged the broad market to a degree, but they are still handily outperforming their international peers. The recent underperformance of international stocks relative to the US is nothing new and consistent with longer term trends.
Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the SPDR S&P Dividend ETF (SDY) is a passively managed exchange traded fund launched on 11/08/2005.
SDY focuses on dividend growth stocks with 20+ years of consecutive dividend increases, offering a 2.5% yield but has a high expense ratio of 0.35%. The fund's high exposure to defensive sectors provides stability, but its significant allocation to mid-cap stocks introduces higher volatility during economic downturns. Limited exposure to the technology sector constrains SDY's growth potential, making it less suitable for investors seeking both dividend growth and capital appreciation.
SDY selects S&P Composite 1500 Index stocks with 20+ years of consecutive dividend growth. Its expense ratio is 0.35%, and the ETF has amassed an impressive $20 billion in assets. Despite its popularity, SDY is a poor choice for dividend investors. Its 2.51% expected dividend yield is mediocre, and downside risk protection appears to be its only redeeming feature. Instead, I'll demonstrate SDY's quality features are relatively poor. ETFs like VSDA and DGRO also feature similar yields and better combinations of quality, value, and growth.
A smart beta exchange traded fund, the SPDR S&P Dividend ETF (SDY) debuted on 11/08/2005, and offers broad exposure to the Style Box - Large Cap Value category of the market.
The SPDR S&P Dividend ETF (SDY) was launched on 11/08/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The SPDR S&P Dividend ETF (SDY) was launched on 11/08/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
It is almost the official start of the holiday shopping season, also known as Thanksgiving. However, just as some retailers have offered savings to early shoppers, ETF providers have offered early tax benefits to investors.
SDY offers a defensive investment option with a focus on high-yield dividend aristocrats, which can be appealing to both conservative and income-focused investors. Its growth prospects can be supported by the upcoming lower interest rates in the short- to midterm and by its approach to selecting stocks in the long term. The ETF's dividend aristocrat bias and modest valuation make it suitable for hedging today; something that is much needed amid serious risks and high valuations.