State Street Global Advisors announced the launch of the SPDR Portfolio S&P Sector Neutral Dividend ETF (NYSE Arca: SPDG). The fund is designed to track the total return performance of the S&P Sector-Neutral High Yield Dividend Aristocrats Index.
The index is designed to mirror the sector weights of the S&P Composite 1500 Index. It includes companies that have increased or maintained dividend payments every year for at least seven consecutive years. Additionally, it seeks to mitigate the effect sector biases can have on the relative returns of dividend strategies versus broader equity markets.
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A Compelling Addition to the SPDR Portfolio ETF Lineup
SSGA’s head of SPDR Americas Research Matthew Bartolini called SPDG “a compelling addition” to the firm’s “SPDR Portfolio ETF lineup.”
“SPDG is designed for income-oriented buy-and-hold investors seeking a low-cost, core dividend fund,” Bartolini added.
Income generation continues to be a critical portfolio construction goal. Therefore, US-listed dividend equity ETFs have had inflows in 36 out of the last 37 months, accumulating $129 billion in assets.
“Advisors continue to seek out equity income strategies in 2023,” said VettaFi’s head of research Todd Rosenbluth. “While some of them are slanted to defensive sectors like consumer staples and health care, the new ETF provides broader diversification.”
SPDG is the newest addition to SSGA’s suite of 23 low-cost SPDR Portfolio ETFs. Since launching in 2017, SPDR Portfolio ETFs have more than $156 billion in AUM. SSGA recently cut the fees on 10 of its Portfolio ETFs. After that change, the SPDR Portfolio S&P 500 ETF (SPLG) now has an expense ratio of just two basis points, making it one of the cheapest ETFs on the market.
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