Is SPDR S&P Global Dividend ETF (WDIV) a Strong ETF Right Now?
Smart Beta ETF report for WDIV
Designed to provide broad exposure to the World ETFs category of the market, the SPDR S&P Global Dividend ETF (WDIV) is a smart beta exchange traded fund launched on 05/29/2013.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
Because the fund has amassed over $335.56 million, this makes it one of the average sized ETFs in the World ETFs. WDIV is managed by State Street Global Advisors. Before fees and expenses, WDIV 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.
WDIV's 12-month trailing dividend yield is 4.69%.
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.
When you look at individual holdings, Keyera Corp. (KEY-CA) accounts for about 2.17% of the fund's total assets, followed by Exxon Mobil Corporation (XOM) and Smartcentres Real Estate Investment Trust (SRU.UT-CA).
WDIV's top 10 holdings account for about 17.96% of its total assets under management.
Performance and Risk
Year-to-date, the SPDR S&P Global Dividend ETF return is roughly 15.53% so far, and it's up approximately 30.11% over the last 12 months (as of 10/18/2021). WDIV has traded between $51.98 and $71.40 in this past 52-week period.
The fund has a beta of 0.92 and standard deviation of 20.70% for the trailing three-year period, which makes WDIV a low risk choice in this particular space. With about 116 holdings, it effectively diversifies company-specific risk.
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) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $16.87 billion in assets, Vanguard Total World Stock ETF has $24.60 billion. ACWI has an expense ratio of 0.32% and VT charges 0.08%.
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.
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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SPDR S&P Global Dividend ETF (WDIV): ETF Research Reports
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
iShares MSCI ACWI ETF (ACWI): ETF Research Reports
Vanguard Total World Stock ETF (VT): ETF Research Reports
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