For investors seeking momentum, SPDR S&P Dividend ETF (SDY - Free Report) is probably on radar now. The fund just hit a 52-week high and is up around 12.37% from its 52-week low price of $87.95/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SDY in Focus
The SPDR S&P Dividend ETF before expenses seeks to closely match the returns and characteristics of the S&P High Yield Dividend Aristocrats Index. SDY provides exposure to 111 U.S. stocks. Consumer Staples is the top sector accounting for less than one-fourth of the portfolio while industrials, financials, utilities and consumer discretionary round off the next four spots. The fund charges 0.35% as expense ratio (see all Large-Cap ETFs here).
Why the Move?
Faster-than-expected rate hikes have affected stocks. Seasonal phenomenon has also got to the stocks as September is a historically weak month for equity markets and the mid-term elections that are to follow make matters worse. The return of volatility in the stock market has drawn investors again to a safer territory. Companies that payout dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Further, dividend-offering securities are the major sources of consistent income for investors when returns from the equity market are at risk.
More Gains Ahead?
Currently, SDY has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. The fund will most likely perform decently in near future as it has a positive weighted alpha of 10.12 and low 20-day historical volatility of 6.93%.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, SPDR S&P Dividend ETF (SDY - Free Report) is probably on radar now. The fund just hit a 52-week high and is up around 12.37% from its 52-week low price of $87.95/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SDY in Focus
The SPDR S&P Dividend ETF before expenses seeks to closely match the returns and characteristics of the S&P High Yield Dividend Aristocrats Index. SDY provides exposure to 111 U.S. stocks. Consumer Staples is the top sector accounting for less than one-fourth of the portfolio while industrials, financials, utilities and consumer discretionary round off the next four spots. The fund charges 0.35% as expense ratio (see all Large-Cap ETFs here).
Why the Move?
Faster-than-expected rate hikes have affected stocks. Seasonal phenomenon has also got to the stocks as September is a historically weak month for equity markets and the mid-term elections that are to follow make matters worse. The return of volatility in the stock market has drawn investors again to a safer territory. Companies that payout dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Further, dividend-offering securities are the major sources of consistent income for investors when returns from the equity market are at risk.
More Gains Ahead?
Currently, SDY has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. The fund will most likely perform decently in near future as it has a positive weighted alpha of 10.12 and low 20-day historical volatility of 6.93%.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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