SPYD: STATE STREET(R) SPDR(R) PORTFOLIO S&P 500(R) HIGH DIVIDEND ETF
ETF Education Report: SPYD
What this ETF is trying to do
The STATE STREET(R) SPDR(R) PORTFOLIO S&P 500(R) HIGH DIVIDEND ETF (ticker: SPYD) is an exchange-traded fund designed to focus on high dividends. It looks for companies within the S&P 500 that pay out a larger portion of their earnings to shareholders.
What the numbers show
When looking at how this ETF has performed, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price.
• Total Return: This includes both the share price changes AND the cash distributions (dividends) paid out to investors.
According to the data:
• Year-to-Date (YTD): The price return is approximately 10.03%, while the total return is approximately 12.42%.
• One-Year: The price return was approximately 7.14%, while the total return was approximately 12.09%.
• Three-Year: The price return was approximately 30.71%, while the total return was approximately 48.01%.
To visualize the price change, the estimated price from roughly one year ago was $44.42. The current price is $47.59.
Income and distribution explanation
This ETF provides cash to investors through distributions. The distribution yield is approximately 4.27%. This number describes the cash payments relative to the current ETF price. These distributions usually happen quarterly, and there were 4 payouts in the last 12 months.
It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry that high payouts might cause the fund's value to shrink over time.
For SPYD, the erosion-risk score is 100, and the label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Top Holdings
The following are some of the top holdings in this portfolio (note that this is a partial list):
• Accenture PLC Class A (1.67%)
• HP Inc (1.59%)
• Target Corp (1.47%)
• Pfizer Inc (1.46%)
• Ares (1.44%)
• Comcast Corp Class A (1.42%)
• The Mosaic Co (1.41%)
• Verizon Communications Inc (1.41%)
• AT&T Inc (1.40%)
• Medtronic PLC (1.40%)
*Holdings can change over time.*
Pros
• The ETF has shown positive price returns and total returns over the one-year and three-year periods.
• The erosion-risk measurements suggest the fund is not showing signs of price deterioration.
Cons
• The total return is higher than the price return, meaning a significant portion of the gains comes from distributions rather than just the share price going up.
Beginner takeaway
When looking at ETFs like SPYD, always look at the total return to see how much you actually earned including dividends. While high yields can provide regular cash, always check the erosion-risk indicators to see how the fund's value is behaving over time.
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 | 1.95% |
| 2 | HP INC | HPQ | 1.76% |
| 3 | TARGET CORP | TGT | 1.56% |
| 4 | PFIZER INC | PFE | 1.54% |
| 5 | CHEVRON CORP | CVX | 1.47% |
| 6 | AT&T INC | T | 1.45% |
| 7 | MEDTRONIC PLC | MDT | 1.45% |
| 8 | VERIZON COMMUNICATIONS INC | VZ | 1.43% |
| 9 | STANLEY BLACK & DECKER INC | SWK | 1.41% |
| 10 | FRANKLIN TEMPLETON INC | BEN | 1.40% |