Is SPDR Portfolio S&P 500 High Dividend ETF the Best Dividend ETF for You?
The biggest investment mistakes you make are likely to come from situations where you don't fully understand the asset you are buying. That's actually easy to do in the exchange-traded fund (ETF) space, because the logic behind many of the ETFs out there is complex and even convoluted. But that's not the case with the SPDR Portfolio S 500 High Dividend ETF (NYSEMKT: SPYD).
Here's why the SPDR fund could be the best dividend ETF for you -- and why some investors might not want to buy it.
The SPDR Portfolio S 500 High Dividend ETF has the words "high Dividend" in its name. It also includes "S 500" in the mix. This is a shockingly descriptive name, given that the ETF simply buys the 80 highest-yielding stocks from the S&P 500 index and weights them equally in the portfolio. That's very straightforward and easy to understand compared to other dividend ETFs.
Source Fool.com
