Is SPDR S&P Dividend ETF (SDY) a Strong ETF Right Now?
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.
SDY: Flawed Holding Strategy Resulting In Underperformance
SDY is a dividend-based ETF that provides exposure to some of the best dividend paying companies in the world. However, this strategy of stock selection is flawed. The ETF focuses on companies that have paid at least 20 years of consecutive dividends. However, the focus on past performance ignores future growth potential. While SDY has a reasonable expense ratio and a solid dividend growth rate, there may be better alternatives for higher total return and dividend income growth.
Should SPDR S&P Dividend ETF (SDY) Be on Your Investing Radar?
Launched on 11/08/2005, the SPDR S&P Dividend ETF (SDY) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
