None of SPYD’s holdings account for more than 1.6% of the ETF’s weight. In addition to the large combined weight to rate-sensitive real estate and utilities stocks, the fund allocates almost 24% of its combined weight to cyclical consumer discretionary and technology names. Those sectors can help offset some of SPYD’s potential vulnerability to rising Treasury yields, should those yields actually rise.
The ETF also allocates over 15% of its weight to energy and financial services stocks, two sectors widely viewed as value plays.
“SPYD, which is about two years old, has nearly $207.3 million in assets under management, but it would not be surprising to see that sum grow thanks to this dividend ETF’s new, low fee. With an expense ratio of just 0.07%,” SPYD is currently tied for the honor of least expensive dividend ETF, according to InvestorPlace.
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