The SPDR Portfolio S&P 500 High Dividend ETF is a high-yield, dividend-focused exchange-traded fund. The fund's investment approach is as simple as they come, which makes understanding it very easy.
This ETF owns the 80 highest-yielding stocks within the S&P 500 index. The fund's approach results in a notably higher yield than the broad index.
The SPDR Portfolio S&P 500 High Dividend ETF always includes the best possible dividend yield blue chip stocks. However, there's a downside to the underlying strategy that selects this fund's holding.
The SPDR Portfolio S&P 500 High Dividend ETF is a middle-of-the-pack performer that lacks standout characteristics. The ETF has a current dividend yield of 4.4% and exposure to a diverse range of US companies. SPYD's sector allocation, particularly in real estate and utilities, leaves it vulnerable to interest rate changes and underperformance compared to peers.
The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) was launched on 10/21/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.