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Is SPDR S&P Global Dividend ETF (WDIV) a Strong ETF Right Now?
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Making its debut on 05/29/2013, smart beta exchange traded fund SPDR S&P Global Dividend ETF (WDIV - Free Report) provides investors broad exposure to the World ETFs 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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 & Index
Managed by State Street Global Advisors, WDIV has amassed assets over $237.63 million, making it one of the average sized ETFs in the World ETFs. WDIV, before fees and expenses, seeks to match the performance of the S&P Global Dividend Aristocrats Index.
The S&P Global Dividend Aristocrats Index measures the performance of high dividend-yield companies included in the S&P Global BMI that have followed a managed-dividends policy of increasing or stable dividends for at least ten consecutive years.
Cost & Other Expenses
When 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 WDIV are 0.40%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 5.30%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Taking into account individual holdings, Enagas Sa (ENG-ES) accounts for about 1.94% of the fund's total assets, followed by H&r Block Inc. (HRB - Free Report) and Ltc Properties Inc. (LTC - Free Report) .
WDIV's top 10 holdings account for about 16.29% of its total assets under management.
Performance and Risk
The ETF has lost about -7.93% so far this year and is down about -7.07% in the last one year (as of 08/31/2022). In the past 52-week period, it has traded between $59.40 and $69.09.
The fund has a beta of 0.79 and standard deviation of 21.05% for the trailing three-year period, which makes WDIV a low risk choice in this particular space. With about 117 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P Global Dividend ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI - Free Report) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT - Free Report) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $17.48 billion in assets, Vanguard Total World Stock ETF has $22.73 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
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.
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Is SPDR S&P Global Dividend ETF (WDIV) a Strong ETF Right Now?
Making its debut on 05/29/2013, smart beta exchange traded fund SPDR S&P Global Dividend ETF (WDIV - Free Report) provides investors broad exposure to the World ETFs 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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 & Index
Managed by State Street Global Advisors, WDIV has amassed assets over $237.63 million, making it one of the average sized ETFs in the World ETFs. WDIV, before fees and expenses, seeks to match the performance of the S&P Global Dividend Aristocrats Index.
The S&P Global Dividend Aristocrats Index measures the performance of high dividend-yield companies included in the S&P Global BMI that have followed a managed-dividends policy of increasing or stable dividends for at least ten consecutive years.
Cost & Other Expenses
When 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 WDIV are 0.40%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 5.30%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Taking into account individual holdings, Enagas Sa (ENG-ES) accounts for about 1.94% of the fund's total assets, followed by H&r Block Inc. (HRB - Free Report) and Ltc Properties Inc. (LTC - Free Report) .
WDIV's top 10 holdings account for about 16.29% of its total assets under management.
Performance and Risk
The ETF has lost about -7.93% so far this year and is down about -7.07% in the last one year (as of 08/31/2022). In the past 52-week period, it has traded between $59.40 and $69.09.
The fund has a beta of 0.79 and standard deviation of 21.05% for the trailing three-year period, which makes WDIV a low risk choice in this particular space. With about 117 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P Global Dividend ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI - Free Report) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT - Free Report) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $17.48 billion in assets, Vanguard Total World Stock ETF has $22.73 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
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.