3 Things You Need to Know If You Buy the SPDR Portfolio S&P 500 High Dividend ETF Today
Investors looking for a high-yield exchange-traded fund (ETF) will probably stumble across the SPDR Portfolio S 500 High Dividend ETF (NYSEMKT: SPYD) fairly quickly while doing research. After all, it has a yield of 4.4%, which is far higher than the yield offered by the S 500 index.
As the name of this ETF implies, high dividend yields are a key goal -- but don't jump in just yet. There are a few things you'll want to know before buying.
There's only one important criterion for getting into the SPDR Portfolio S 500 High Dividend ETF -- high yield. The selection starts with the constituents of the S&P 500 index, which means that all of the companies being considered for SPDR Portfolio S 500 High Dividend ETF are large and economically important U.S. companies. The S 500 is a hand-selected index in that regard but doesn't necessarily focus on company quality or recent company performance.
Source Fool.com
