Earlier this month State Street Global Advisors launched the SPDR Portfolio ETFs, a suite of 15 dirt-cheap ETFs to provide exposure to a range of core equity and fixed-income asset classes, representing a major shot in the ETF fee battle.
The funds in the SPDR Portfolio ETFs are reconfigured existing products with newly lowered expense ratios. That group includes the SPDR Portfolio S&P 500 High Dividend ETF (NYSEArca: SPYD). SPYD now has an annual fee of 0.07%, or $7 on a $10,000 investment, making it one of the least expensive dividend ETFs in the U.S.
SPYD tries to reflect the performance of the S&P 500 High Dividend Index, which is comprised of the top 80 dividend-paying securities listed on the S&P 500 Index, based on dividend yield.
“Sporting a dividend yield of almost 4%, SPYD yields more than twice as much as the S&P 500. Of course, that means exposure to high-yield sectors as real estate and utilities combine for over 41% of this fund’s weight. That could make this dividend ETF vulnerable to a sudden spike in Treasury yields because the real estate and utilities sectors are among the most rate-sensitive sectors,” reports InvestorPlace.