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.

Continue reading

Source Fool.com