SPYD: A $7.3B Benchmark For The High-Dividend ETF Space
**SPYD: A $7.3B Benchmark for the High-Dividend ETF Space**
*By The Sunday Investor | 6.86K Followers*
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The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) tracks the S&P 500 High Dividend Index, selecting the 80 highest-yielding stocks by dividend yield. With $7.3 billion in assets under management and an expense ratio of only 0.07%, SPYD has established itself as a significant player in the high-dividend ETF space.
However, SPYD’s current attractiveness is limited. Many of its holdings exhibit negative earnings growth rates, which raises concerns about the fund’s long-term performance. Additionally, its lack of a quality screen could hurt shareholders over time, especially those looking for stability and consistent income growth.
Despite these drawbacks, SPYD remains one of the few ETFs offering an estimated dividend yield above 4%. This yield level makes it a compelling option for income-focused investors, especially those with a patient outlook and an expectation of a market rotation favoring value stocks.
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### Alternative High-Dividend ETFs to Consider
Beyond SPYD, there are several other ETFs in the high-dividend space with similar or better yield profiles. This article highlights eight alternative ETFs, with four standing out as possible substitutes:
– **WBIY**
– **FDL**
– **SPHD**
– **RDIV**
While I remain cautious about strongly recommending any of these options, their attractive yields may appeal to income investors who are willing to tolerate some risk for higher income potential.
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### Investment Thesis
The SPDR S&P 500 High Dividend ETF (SPYD) is among a select group of U.S. equity ETFs offering dividend yields of 4% or higher. In today’s market, which is often dominated by momentum stocks, income-oriented funds like SPYD provide a valuable alternative for investors seeking stable cash flow.
However, investors should carefully weigh this yield against the underlying fundamentals of the portfolio, particularly given the challenges associated with earnings growth and quality metrics.
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### About The Sunday Investor
The Sunday Investor is focused exclusively on U.S. equity ETFs and boasts a strong analytical background. He has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute and completed all requirements for the Chartered Investment Manager designation.
Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system available at [etf-rankings.com](http://etf-rankings.com). This system evaluates nearly 1,000 ETFs based on factors such as costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment. These individual scores combine into a simple composite score ranging from 1 to 10 to aid investor decision-making.
Happy Investing!
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### Analyst’s Disclosure
I/we have a beneficial long position in the shares of SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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### Seeking Alpha’s Disclosure
Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole.
Seeking Alpha is not a licensed securities dealer, broker, or US investment adviser or investment bank. Our analysts are third-party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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