Is State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) a Strong ETF Right Now?

Making its debut on 10/21/2015, smart beta exchange traded fund State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) provides investors broad exposure to the Style Box - Large Cap Value category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexBecause the fund has amassed over $7.39 billion, this makes it one of the larger ETFs in the Style Box - Large Cap Value. SPYD is managed by State Street Investment Management. 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 ExpensesWhen considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.Annual operating expenses for SPYD are 0.07%, which makes it one of the least expensive products in the space.SPYD's 12-month trailing dividend yield is 4.43%.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.Representing 21.2% of the portfolio, the fund has heaviest allocation to the Real Estate sector; Financials and Consumer Staples round out the top three.Taking into account individual holdings, Cvs Health Corp (CVS) accounts for about 1.66% of the fund's total assets, followed by Apa Corp (APA) and Abbvie Inc (ABBV).The top 10 holdings account for about 14.58% of total assets under management.Performance and RiskSo far this year, SPYD return is roughly 5.18%, and it's up approximately 1.94% in the last one year (as of 12/16/2025). During this past 52-week period, the fund has traded between $38.81 and $45.16.SPYD has a beta of 0.78 and standard deviation of 15.13% for the trailing three-year period, which makes the fund 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 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 Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $71.88 billion in assets, Vanguard Value ETF has $157.78 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.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 ValueBottom LineTo 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 >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks