What is SPDR Portfolio S&P 500 High dividend ETF?
About this Benchmark. The S&P 500 High Dividend Index is designed to measure the performance of the top 80 high dividend-yielding companies within the S&P 500® Index, based on dividend yield.
SPDR Portfolio S&P 500 High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
This index is designed to track the performance of the 80 highest yield dividend equities in the S&P 500. All the securities in the index are large capitalization U.S. equities since all of them are in the S&P 500.
The ETF return is roughly 6.77% so far this year and is up about 29% in the last one year (as of 02/23/2024). In the past 52-week period, it has traded between $385.36 and $507.50. The ETF has a beta of 1 and standard deviation of 17.45% for the trailing three-year period, making it a medium risk choice in the space.
The SPDR Portfolio S&P 500 ETF (SPLG) offers exposure to the S&P 500 Index, one of the world's best-known and most widely followed stock benchmarks. The S&P 500 Index includes many large and well known U.S. firms, often called 'Blue Chips', including Johnson & Johnson, Apple, Microsoft, Amazon and Visa.
| Symbol | Name | Dividend Yield |
|---|---|---|
| IWMY | Defiance R2000 Enhanced Options Income ETF | 26.13% |
| AAPB | GraniteShares 2x Long AAPL Daily ETF | 24.56% |
| JEPY | Defiance S&P 500 Enhanced Options Income ETF | 23.53% |
| RYSE | Vest 10 Year Interest Rate Hedge ETF | 23.38% |
In fact, an ETF called the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD), launched in 2013, currently boasts an eye-catching yield of 12%. While the ETF holds appeal for income investors, there are also several things that investors should be aware of before jumping in right after seeing that eye-popping yield.
SPDR S&P 500 ETF Trust (SPY)
The dividend is paid every three months and the last ex-dividend date was Mar 15, 2024.
Historical dividend payout and yield for SPDR S&P 500 ETF (SPY) since 1995. The current TTM dividend payout for SPDR S&P 500 ETF (SPY) as of March 28, 2024 is $6.72. The current dividend yield for SPDR S&P 500 ETF as of March 28, 2024 is 1.29%.
There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.0.
Is Vanguard or SPDR better?
When it comes to choosing between Vanguard and State Street SPDR for passive sector exposure, you really can't go wrong with either. Both offer low-cost options, but your selection should be based on your specific investment objectives. For buy-and-hold investors, Vanguard's sector ETFs may be the preferable choice.
SPY has a conensus rating of Moderate Buy which is based on 395 buy ratings, 102 hold ratings and 7 sell ratings. What is SPY's price target? The average price target for SPY is $565.61. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
SPDR S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPY is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market.
The Standard and Poor Depositary Receipts (SPDR) S&P 500 ETF is an exchange-traded fund that tracks the S&P 500 stock market index. The SPDR S&P 500 ETF is listed on the New York Stock Exchange and trades under the ticker symbol SPY. The SPY's price tracks the S&P 500 index.
Key Takeaways
SPDR exchange traded funds are issued by State Street Global Advisors and are designed to track indexes or benchmarks. SPDR 500 Trust, sometimes called spiders, holds the same stocks as the S&P 500 Index. ETFs differ from mutual funds in that shares are traded on the exchanges like shares of stock.
Spider (SPDR) is a short form name for a Standard & Poor's depository receipt, an exchange-traded fund (ETF) managed by State Street Global Advisors that tracks the Standard & Poor's 500 index (S&P 500).
Dividend-paying Stocks
Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.
High-dividend ETFs invest in stocks with above-average dividends. In addition, some will use creative investment strategies such as covered-call writing to further enhance yield. High-dividend ETFs can be a great choice for income-oriented investors.
| Stock | Forward dividend yield |
|---|---|
| Exxon Mobil Corp. (XOM) | 3.5% |
| Johnson & Johnson (JNJ) | 3% |
| Procter & Gamble Co. (PG) | 2.3% |
| Home Depot Inc. (HD) | 2.4% |
- iShares (BlackRock): $2.59 trillion.
- Vanguard: $2.36 trillion.
- SPDR (State Street): $1.22 trillion.
- Invesco: $454.78 billion.
- Charles Schwab: $320.21 billion3.
How many dividend ETFs should I invest in?
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification. But the number of ETFs is not what you should be looking at.
| Symbol | Name | 5-Year Return |
|---|---|---|
| FNGU | MicroSectors FANG+™ Index 3X Leveraged ETN | 51.32% |
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 48.22% |
| TECL | Direxion Daily Technology Bull 3X Shares | 43.55% |
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | 40.11% |
Types of dividends
Moreover, the investor must own the shares in the ETF paying the dividend for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. This means if you actively trade ETFs, you probably can't meet this holding requirement.
You only need one S&P 500 ETF
You could be tempted to buy all three ETFs, but just one will do the trick. You won't get any additional diversification benefits (meaning the mix of various assets) because all three funds track the same 500 companies.
In the last 30 Years, the SPDR S&P 500 (SPY) ETF obtained a 10.26% compound annual return, with a 15.12% standard deviation.
