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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?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Managed by State Street Global Advisors, WDIV has amassed assets over $204.53 million, making it one of the average sized ETFs in the World ETFs. This particular fund seeks to match the performance of the S&P Global Dividend Aristocrats Index before fees and expenses.
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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.40%.
It has a 12-month trailing dividend yield of 5.42%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, A2a Spa (A2A) accounts for about 2.05% of the fund's total assets, followed by Adecco Group Ag Reg (ADEN) and Lenovo Group Ltd.
The top 10 holdings account for about 16.62% of total assets under management.
Performance and Risk
The ETF has lost about -3.46% so far this year and is down about -0.87% in the last one year (as of 11/13/2023). In the past 52-week period, it has traded between $52.34 and $62.68.
The ETF has a beta of 0.81 and standard deviation of 13.76% for the trailing three-year period, making it a low risk choice in the 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 $17.50 billion in assets, Vanguard Total World Stock ETF has $28.69 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?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Managed by State Street Global Advisors, WDIV has amassed assets over $204.53 million, making it one of the average sized ETFs in the World ETFs. This particular fund seeks to match the performance of the S&P Global Dividend Aristocrats Index before fees and expenses.
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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.40%.
It has a 12-month trailing dividend yield of 5.42%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, A2a Spa (A2A) accounts for about 2.05% of the fund's total assets, followed by Adecco Group Ag Reg (ADEN) and Lenovo Group Ltd.
The top 10 holdings account for about 16.62% of total assets under management.
Performance and Risk
The ETF has lost about -3.46% so far this year and is down about -0.87% in the last one year (as of 11/13/2023). In the past 52-week period, it has traded between $52.34 and $62.68.
The ETF has a beta of 0.81 and standard deviation of 13.76% for the trailing three-year period, making it a low risk choice in the 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 $17.50 billion in assets, Vanguard Total World Stock ETF has $28.69 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.