Looking at the fund’s underlying holdings, the ETF is littered with quality names, including HCP (NYSE: HCP) 2.7%, AT&T (NYSE: T) 2.5%, Consolidated Edison (NYSE: ED) 2.3%, National Retail Properties (NYSE: NNN) 2.0% and People’s United Financial (NYSE PBCT) 1.8%. SDY also weights its component stocks by their annual dividend yield, which can provide a value tilt.
Sector weights include financials 21.3%, consumer staples 15.4%, industrials 14.4%, utilities 11.3%, materials 10.9%, consumers discretionary 9.0%, health care 7.3%, energy 3.6%, information technology 3.5% and telecom services 3.4%. During times of heightened volatility, the ETF’s defensive sector tilts will help even out market swings.
SPDR S&P Dividend ETF
For more information on dividend stocks, visit our dividend ETFs category.
Max Chen contributed to this article.