Global Dividend ETFs: State Street Readies New Fund
March 2nd 2013 at 8:06am by Tom Lydon
Rounding out its line of dividend exchange traded funds, State Street Global Advisors filed with the Securities and Exchange Commission to launch a global-oriented fund.
According to the SEC filing, the SPDR S&P Global Dividend ETF will try to reflect the performance of the S&P Global Dividend Aristocrats Index, which tracks stocks of global companies that offer high dividend yields.
The component holdings have followed a managed-dividends policy of increasing or stable dividends over at least ten consecutive years, and the holdings have a maximum indicated dividend yield of 10%. The top 100 qualified stocks with the highest yield are selected.
As a way to diversify holdings, the fund can not hold more than 20 stocks from a single country, 35 stocks in each GICs sector, each component’s weighting is capped at 3% and no single country or GICs sector accounts for over 25% of the index.
The index is exposed to both developed and developing markets, including Australia, Canada, China, France, Germany, Hong Kong, Italy, Japan, Netherlands, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, United Kingdom and United States.
The proposed ETF will round out SSgA’s line of dividend ETFs, including SPDR S&P Dividend (NYSEArca: SDY), which has a 3.02% 12-month yield, SPDR S&P Emerging Markets Dividend ETF (NYSEArca: EDIV), which has a 5.5% 12-month yield, and SPDR S&P International Dividend ETF (NYSEArca: DWX), which has a 6.07% 12-month yield. [International Dividend ETFs]
The fund will also compete with other global dividend ETFs, like the Global X SuperDividend ETF (NYSEArca: SDIV), which tracks 100 equally weighted companies that are ranked among the highest dividend yielding equity securities in the world. SDIV has a 7.22% 12-month yield. [A global Dividend ETF with an 8% Yield]
Some other global dividend ETFs include:
- Guggenheim S&P Global Dividend Opportunities Index ETF (NYSEArca: LVL): 7.18% 12-month yield
- First Trust Dow Jones Global Select Dividend Index (NYSEArca: FGD): 4.79% 12-month yield
- WisdomTree Global Equity Income Fund (NYSEArca: DEW): 3.75% 12-month yield
For more information on new fund products, visit our new ETFs category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.