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Is SPDR S&P Global Dividend ETF (WDIV) a Strong ETF Right Now?
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Designed to provide broad exposure to the World ETFs category of the market, the SPDR S&P Global Dividend ETF (WDIV - Free Report) is a smart beta exchange traded fund launched on 05/29/2013.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $285.27 million, this makes it one of the average sized ETFs in the World ETFs. WDIV is managed by State Street Global Advisors. Before fees and expenses, this particular fund seeks to match the performance of the S&P Global Dividend Aristocrats Index.
The S&P Global Dividend Aristocrats Index measures the performance of high dividend-yield companies included in the S&P Global BMI that have followed a managed-dividends policy of increasing or stable dividends for at least ten consecutive years.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.
It's 12-month trailing dividend yield comes in at 6.37%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Exxon Mobil Corporation (XOM - Free Report) accounts for about 2.28% of the fund's total assets, followed by Keyera Corp. (KEY-CA) and Smartcentres Real Estate Investment Trust (SRU.UT-CA).
Its top 10 holdings account for approximately 18.74% of WDIV's total assets under management.
Performance and Risk
So far this year, WDIV has gained about 11.62%, and is up about 10.21% in the last one year (as of 12/21/2021). During this past 52-week period, the fund has traded between $59.61 and $71.40.
WDIV has a beta of 0.91 and standard deviation of 20.64% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 115 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P Global Dividend ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI - Free Report) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT - Free Report) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $16.45 billion in assets, Vanguard Total World Stock ETF has $24.68 billion. ACWI has an expense ratio of 0.32% and VT charges 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is SPDR S&P Global Dividend ETF (WDIV) a Strong ETF Right Now?
Designed to provide broad exposure to the World ETFs category of the market, the SPDR S&P Global Dividend ETF (WDIV - Free Report) is a smart beta exchange traded fund launched on 05/29/2013.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $285.27 million, this makes it one of the average sized ETFs in the World ETFs. WDIV is managed by State Street Global Advisors. Before fees and expenses, this particular fund seeks to match the performance of the S&P Global Dividend Aristocrats Index.
The S&P Global Dividend Aristocrats Index measures the performance of high dividend-yield companies included in the S&P Global BMI that have followed a managed-dividends policy of increasing or stable dividends for at least ten consecutive years.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.
It's 12-month trailing dividend yield comes in at 6.37%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Exxon Mobil Corporation (XOM - Free Report) accounts for about 2.28% of the fund's total assets, followed by Keyera Corp. (KEY-CA) and Smartcentres Real Estate Investment Trust (SRU.UT-CA).
Its top 10 holdings account for approximately 18.74% of WDIV's total assets under management.
Performance and Risk
So far this year, WDIV has gained about 11.62%, and is up about 10.21% in the last one year (as of 12/21/2021). During this past 52-week period, the fund has traded between $59.61 and $71.40.
WDIV has a beta of 0.91 and standard deviation of 20.64% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 115 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P Global Dividend ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI - Free Report) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT - Free Report) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $16.45 billion in assets, Vanguard Total World Stock ETF has $24.68 billion. ACWI has an expense ratio of 0.32% and VT charges 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.