Should State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) Be on Your Investing Radar?

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) is a passively managed exchange traded fund launched on October 21, 2015.The fund is sponsored by State Street Investment Management. It has amassed assets over $7.38 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueLarge cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners. CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 4.11%.Sector Exposure and Top HoldingsIt 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.This ETF has heaviest allocation to the Real Estate sector -- about 27.2% of the portfolio. Consumer Staples and Financials round out the top three.Looking at individual holdings, Apa Corp (APA) accounts for about 1.78% of total assets, followed by Lyondellbasell Indu Cl A (LYB) and Dow Inc (DOW).The top 10 holdings account for about 15.48% of total assets under management.Performance and RiskSPYD seeks to match the performance of the S&P 500 High Dividend Index before fees and expenses. 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.The ETF has added about 12.81% so far this year and was up about 17.26% in the last one year (as of 06/11/2026). In the past 52-week period, it has traded between $41.80 and $48.34.The ETF has a beta of 0.71 and standard deviation of 14.03% for the trailing three-year period, making it a medium risk choice in the space. With about 83 holdings, it effectively diversifies company-specific risk.AlternativesState Street SPDR Portfolio S&P 500 High Dividend ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPYD is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well. The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $95.38 billion in assets, Vanguard Value Index Fund ETF Shares has $179.15 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks