SPDV: AAM S&P 500 HIGH DIVIDEND VALUE ETF
ETF Education Report: AAM S&P 500 HIGH DIVIDEND VALUE ETF (SPDV)
What this ETF is trying to do
The AAM S&P 500 High Dividend Value ETF (ticker: SPDV) is an exchange-traded fund. Based on its name, it focuses on companies within the S&P 500 that are considered "value" stocks and pay higher dividends. It holds a total of 56 different holdings.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return (how much the share price changed) and total return (the share price change plus any cash distributions received).
For SPDV, the numbers show growth in both areas:
• Year-to-Date (YTD): The price return is approximately 16.29%, while the total return is approximately 18.88%.
• One Year: The price return was approximately 15.94%, and the total return was approximately 20.12%.
• Three Years: The price return was approximately 43.18%, and the total return was approximately 60.53%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $34.75. The current price is $40.29.
Top Holdings:
The following are some of the largest companies held by this ETF (note that this is a partial list):
• Skyworks Solutions Inc (2.61%)
• Cognizant Technology Solutions Corp Class A (2.49%)
• Accenture PLC Class A (2.41%)
• HP Inc (2.34%)
• APA Corp (2.15%)
Income and distribution explanation
This ETF provides cash to investors through distributions. The distribution yield is approximately 3.27%. This number describes the cash paid out relative to the ETF's price.
The fund usually pays these distributions monthly, with 12 payouts recorded over the last year. Most of these payments have occurred on Fridays. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. Some investors worry that high payouts might cause this. However, for SPDV, the erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The fund has shown positive price returns and total returns over the one-year and three-year periods.
• It provides regular monthly cash distributions.
Cons
• The list of holdings provided is only a partial list of the 56 total companies held.
• As with all investments, share prices can change, and past performance does not guarantee future results.
Beginner takeaway
SPDV is an ETF that focuses on dividend-paying value stocks. It has provided both share-price growth and cash distributions over the last few years. When looking at this or any ETF, always distinguish between the price return and the total return to see the full picture of how the investment performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ACCENTURE PLC CLASS A | ACN | 2.59% |
| 2 | COGNIZANT TECHNOLOGY SOLUTIONS CORP CLASS A | CTSH | 2.49% |
| 3 | SKYWORKS SOLUTIONS INC | SWKS | 2.46% |
| 4 | HP INC | HPQ | 2.37% |
| 5 | APA CORP | APA | 2.29% |
| 6 | PFIZER INC | PFE | 2.08% |
| 7 | BROADRIDGE FINANCIAL SOLUTIONS INC | BR | 2.06% |
| 8 | CONSTELLATION ENERGY CORP | CEG | 2.05% |
| 9 | AUTOMATIC DATA PROCESSING INC | ADP | 2.02% |
| 10 | DEVON ENERGY CORP | DVN | 2.01% |