By investing exclusively in firms that have raised their annual dividends each of the past 20 years, SPDR S&P Dividend ETF pursues yield in a risk-conscious, quality-oriented manner. This fund’s dividend-yield weighting approach mechanically overweights declining stocks, but the pedigree of its holdings makes this a solid strategy. It retains its Morningstar Analyst Rating of Silver.
Will SDY outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable SDY’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the SDY management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of SDY’s parent organization’s priorities and whether they’re in line with investors’ interests.