We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) a Strong ETF Right Now?
Read MoreHide Full Article
A smart beta exchange traded fund, the State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD - Free Report) debuted on 10/21/2015, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by State Street Investment Management. SPYD has been able to amass assets over $7.54 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. SPYD, before fees and expenses, seeks to match the performance of the S&P 500 High Dividend Index.
The S&P 500 High Dividend Index is designed to measure the performance of the top 80 dividend-paying securities listed on the S&P 500 Index, based on dividend yield.
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.
Annual operating expenses for SPYD are 0.07%, which makes it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 4.25%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
SPYD's heaviest allocation is in the Real Estate sector, which is about 24.4% of the portfolio. Its Consumer Staples and Financials round out the top three.
When you look at individual holdings, Accenture Plc Cl A (ACN) accounts for about 1.94% of the fund's total assets, followed by Hp Inc (HPQ) and Pfizer Inc (PFE).
The top 10 holdings account for about 15.41% of total assets under management.
Performance and Risk
The ETF has added roughly 15.68% so far this year and it's up approximately 15.06% in the last one year (as of 10/27/2026). In the past 52-week period, it has traded between $41.96 and $50.68
SPYD has a beta of 0.73 and standard deviation of 13.94% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 81 holdings, it effectively diversifies company-specific risk .
Alternatives
State Street SPDR Portfolio S&P 500 High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Morningstar Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $118.32 billion in assets, Vanguard Morningstar Value ETF has $192.82 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
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.
View the Zacks #1 Rank List
Image: Bigstock
Is State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) a Strong ETF Right Now?
A smart beta exchange traded fund, the State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD - Free Report) debuted on 10/21/2015, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by State Street Investment Management. SPYD has been able to amass assets over $7.54 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. SPYD, before fees and expenses, seeks to match the performance of the S&P 500 High Dividend Index.
The S&P 500 High Dividend Index is designed to measure the performance of the top 80 dividend-paying securities listed on the S&P 500 Index, based on dividend yield.
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.
Annual operating expenses for SPYD are 0.07%, which makes it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 4.25%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
SPYD's heaviest allocation is in the Real Estate sector, which is about 24.4% of the portfolio. Its Consumer Staples and Financials round out the top three.
When you look at individual holdings, Accenture Plc Cl A (ACN) accounts for about 1.94% of the fund's total assets, followed by Hp Inc (HPQ) and Pfizer Inc (PFE).
The top 10 holdings account for about 15.41% of total assets under management.
Performance and Risk
The ETF has added roughly 15.68% so far this year and it's up approximately 15.06% in the last one year (as of 10/27/2026). In the past 52-week period, it has traded between $41.96 and $50.68
SPYD has a beta of 0.73 and standard deviation of 13.94% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 81 holdings, it effectively diversifies company-specific risk .
Alternatives
State Street SPDR Portfolio S&P 500 High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Morningstar Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $118.32 billion in assets, Vanguard Morningstar Value ETF has $192.82 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
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.