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Yahoo
9 hours ago
- Business
- Yahoo
SDY Is a Popular Dividend ETF for Passive Income. But Is It the Best?
Dividend-paying stocks are hard to beat. The best dividend stocks boost their distributions from year to year while their share prices appreciate, too. The SPDR S&P Dividend ETF only holds stakes in companies that have hiked their payouts for 20 straight years or more. 10 stocks we like better than SPDR Series Trust - SPDR S&P Dividend ETF › When it comes to investing, it makes a lot of sense for many of us to opt for exchange-traded funds (ETFs), which are funds that trade like stocks. With classic mutual funds, if you want to buy into one, you place your order and it gets filled at the end of the day, at a price based on the closing prices of its components that session. With an ETF, you can place an order to buy at any time during the trading day and that order can be executed immediately. ETFs come in a wide variety, and many are low-fee index funds, including the popular Vanguard S&P 500 ETF (NYSEMKT: VOO). It's worth considering dividend-focused ETFs, too, as they can deliver valuable income for decades, without your having to research and choose individual dividend-paying stocks. One popular fund of this type is the SPDR S&P Dividend ETF (NYSEMKT: SDY). Would it be a good fit for your portfolio? Dividend-paying stocks are a more powerful tool for building investors' wealth than many people realize. Part of the reason is that in order to commit to paying a regular dividend, a company's management must be fairly confident in the reliability of cash flows, finding them sufficient to support the dividend. No company wants to have to shrink or eliminate a dividend, as that would be a red flag to investors. Consider this tidbit from the folks at Hartford Funds: "Going back to 1960, 85% of the cumulative total return of the S&P 500 Index can be attributed to reinvested dividends and the power of compounding." SPDR S&P Dividend ETF tracks the S&P High Yield Dividend Aristocrats index, which restricts its components to companies in the S&P Composite 1500 that have increased their payouts annually for at least 20 consecutive years. The ETF recently yielded a solid 2.59%. Here's how it has performed in recent years Over the Past... Average Annualized Gain 3 years 6.31% 5 years 11.34% 10 years 9.24% 15 years 11.12% Source: Morningstar. Figures as of June 25, 2025. You'll note that those are not the fattest returns -- but they come along with some durability, as not every company is so solidly built that it can not only pay dividends for at least 20 years, but increase them annually, too. The SPDR S&P Dividend ETF recently held positions in 149 companies, and its top 10 holdings made up about 18% of its total value. Those recent top holdings were: Stock Percent of ETF Microchip Technology 2.41% Verizon Communications 2.36% Realty Income 2.19% Target 1.80% Chevron 1.70% Texas Instruments 1.62% Archer-Daniels-Midland 1.39% Eversource Energy 1.38% Kimberly Clark 1.36% NextEra Energy 1.34% Source: Morningstar. Figures as of June 24, 2025. So -- is the SPDR S&P Dividend ETF the best dividend ETF? Well, sure, for some people. But there are other solid dividend-focused ETFs to consider. Here are some, along with an S&P 500 index fund, for comparison. ETF Recent Yield 5-Year Average Annualized Return 10-Year Average Annualized Return JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI) 8.01% 11.73% N/A iShares Preferred & Income Securities ETF (NASDAQ: PFF) 6.68% 3.22% 3.21% Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) 3.97% 13.34% 10.92% Fidelity High Dividend ETF (NYSEMKT: FDVV) 3.02% 17.91% N/A Vanguard High Dividend Yield ETF (NYSEMKT: VYM) 2.86% 14.60% 10.08% SPDR S&P Dividend ETF 2.59% 11.77% 9.29% iShares US Real Estate ETF (NYSEMKT: IYR) 2.55% 7.26% 6.09% iShares Core Dividend Growth ETF (NYSEMKT: DGRO) 2.23% 13.94% 11.75% Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) 1.79% 14.07% 11.83% First Trust Rising Dividend Achievers ETF (NASDAQ: RDVY) 1.67% 17.61% 12.68% Vanguard S&P 500 ETF (NYSEMKT: VOO) 1.25% 16.54% 13.15% Source: Yahoo! Finance and Morningstar. Figures as of June 24, 2025. Before you jump at the fattest yield you see, remember that dividend growth is important, too. An ETF with a yield of 4% today might be more tempting than one with a yield of 3%, but the fund with the 3% yield might be growing its payouts faster, and wind up delivering more actual income than the other within a few years. Remember that the SPDR S&P Dividend ETF is focused on dividend growers. Its quarterly payout in June 2025 was $0.927 per share, up from $0.68 in June 2020 and $0.503 in June 2015. Note, too, that the JPMorgan Equity Premium Income ETF is a different kind of fund, not purely a holder of dividend-paying stocks. And the iShares Preferred & Income Securities ETF is focused on preferred stock, which tends to appreciate in value more slowly. So dig in deeper into any ETF that intrigues you. Any of the ones above may serve you well, delivering increasing passive income to you and your portfolio for many years or decades. Before you buy stock in SPDR Series Trust - SPDR S&P Dividend ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SPDR Series Trust - SPDR S&P Dividend ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Selena Maranjian has positions in NextEra Energy, Realty Income, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends Chevron, NextEra Energy, Realty Income, Target, Texas Instruments, Vanguard Dividend Appreciation ETF, Vanguard S&P 500 ETF, and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. SDY Is a Popular Dividend ETF for Passive Income. But Is It the Best? was originally published by The Motley Fool
Globe and Mail
15 hours ago
- Business
- Globe and Mail
SDY Is a Popular Dividend ETF for Passive Income. But Is It the Best?
When it comes to investing, it makes a lot of sense for many of us to opt for exchange-traded funds (ETFs), which are funds that trade like stocks. With classic mutual funds, if you want to buy into one, you place your order and it gets filled at the end of the day, at a price based on the closing prices of its components that session. With an ETF, you can place an order to buy at any time during the trading day and that order can be executed immediately. ETFs come in a wide variety, and many are low-fee index funds, including the popular Vanguard S&P 500 ETF (NYSEMKT: VOO). It's worth considering dividend-focused ETFs, too, as they can deliver valuable income for decades, without your having to research and choose individual dividend-paying stocks. One popular fund of this type is the SPDR S&P Dividend ETF (NYSEMKT: SDY). Would it be a good fit for your portfolio? Why dividends? Dividend-paying stocks are a more powerful tool for building investors' wealth than many people realize. Part of the reason is that in order to commit to paying a regular dividend, a company's management must be fairly confident in the reliability of cash flows, finding them sufficient to support the dividend. No company wants to have to shrink or eliminate a dividend, as that would be a red flag to investors. Consider this tidbit from the folks at Hartford Funds: "Going back to 1960, 85% of the cumulative total return of the S&P 500 Index can be attributed to reinvested dividends and the power of compounding." Meet the SPDR S&P Dividend ETF SPDR S&P Dividend ETF tracks the S&P High Yield Dividend Aristocrats index, which restricts its components to companies in the S&P Composite 1500 that have increased their payouts annually for at least 20 consecutive years. The ETF recently yielded a solid 2.59%. Here's how it has performed in recent years Over the Past... Average Annualized Gain 3 years 6.31% 5 years 11.34% 10 years 9.24% 15 years 11.12% Source: Morningstar. Figures as of June 25, 2025. You'll note that those are not the fattest returns -- but they come along with some durability, as not every company is so solidly built that it can not only pay dividends for at least 20 years, but increase them annually, too. The SPDR S&P Dividend ETF recently held positions in 149 companies, and its top 10 holdings made up about 18% of its total value. Those recent top holdings were: Stock Percent of ETF Microchip Technology 2.41% Verizon Communications 2.36% Realty Income 2.19% Target 1.80% Chevron 1.70% Texas Instruments 1.62% Archer-Daniels-Midland 1.39% Eversource Energy 1.38% Kimberly Clark 1.36% NextEra Energy 1.34% Source: Morningstar. Figures as of June 24, 2025. Is the SPDR S&P Dividend ETF the best dividend ETF? So -- is the SPDR S&P Dividend ETF the best dividend ETF? Well, sure, for some people. But there are other solid dividend-focused ETFs to consider. Here are some, along with an S&P 500 index fund, for comparison. JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI) 8.01% 11.73% N/A iShares Preferred & Income Securities ETF (NASDAQ: PFF) 6.68% 3.22% 3.21% Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) 3.97% 13.34% 10.92% Fidelity High Dividend ETF (NYSEMKT: FDVV) 3.02% 17.91% N/A Vanguard High Dividend Yield ETF (NYSEMKT: VYM) 2.86% 14.60% 10.08% SPDR S&P Dividend ETF 2.59% 11.77% 9.29% iShares US Real Estate ETF (NYSEMKT: IYR) 2.55% 7.26% 6.09% iShares Core Dividend Growth ETF (NYSEMKT: DGRO) 2.23% 13.94% 11.75% Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) 1.79% 14.07% 11.83% First Trust Rising Dividend Achievers ETF (NASDAQ: RDVY) 1.67% 17.61% 12.68% Vanguard S&P 500 ETF (NYSEMKT: VOO) 1.25% 16.54% 13.15% Source: Yahoo! Finance and Morningstar. Figures as of June 24, 2025. Before you jump at the fattest yield you see, remember that dividend growth is important, too. An ETF with a yield of 4% today might be more tempting than one with a yield of 3%, but the fund with the 3% yield might be growing its payouts faster, and wind up delivering more actual income than the other within a few years. Remember that the SPDR S&P Dividend ETF is focused on dividend growers. Its quarterly payout in June 2025 was $0.927 per share, up from $0.68 in June 2020 and $0.503 in June 2015. Note, too, that the JPMorgan Equity Premium Income ETF is a different kind of fund, not purely a holder of dividend-paying stocks. And the iShares Preferred & Income Securities ETF is focused on preferred stock, which tends to appreciate in value more slowly. So dig in deeper into any ETF that intrigues you. Any of the ones above may serve you well, delivering increasing passive income to you and your portfolio for many years or decades. Should you invest $1,000 in SPDR Series Trust - SPDR S&P Dividend ETF right now? Before you buy stock in SPDR Series Trust - SPDR S&P Dividend ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SPDR Series Trust - SPDR S&P Dividend ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Selena Maranjian has positions in NextEra Energy, Realty Income, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends Chevron, NextEra Energy, Realty Income, Target, Texas Instruments, Vanguard Dividend Appreciation ETF, Vanguard S&P 500 ETF, and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Yahoo
3 days ago
- Business
- Yahoo
Exchange-Traded Funds, Equity Futures Higher Pre-Bell Friday Amid China Trade Deal Optimism
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.4% and the actively trad Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
SPY Attracts $3.3B as S 500 Nears New Record High
The SPDR S&P 500 ETF Trust (SPY) pulled in $3.3 billion Wednesday, bringing its assets under management to $620.9 billion, according to data provided by FactSet. The inflows came as the S&P 500 closed at 6,092.16, nearly reaching its February record high of 6,147.43. The Invesco QQQ Trust (QQQ) attracted $1.5 billion as the Nasdaq-100 gained 0.21%, while the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) collected $685.7 million. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) pulled in $495.8 million, and the VanEck Semiconductor ETF (SMH) gained $353 million. The Vanguard Mid-Cap ETF (VO) saw outflows of $1.1 billion, while the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) lost $834.2 million and the Vanguard S&P 500 ETF (VOO) experienced outflows of $771 million. U.S. equity ETFs gained $1.4 billion, while U.S. fixed-income ETFs attracted $2.9 billion. International equity ETFs pulled in $1.4 billion. Overall, ETFs gained $6.8 billion for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust 3,307.20 620,923.50 0.53% QQQ Invesco QQQ Trust Series I 1,484.69 344,017.27 0.43% LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 685.71 28,767.07 2.38% HYG iShares iBoxx $ High Yield Corporate Bond ETF 495.75 17,543.07 2.83% IVW iShares S&P 500 Growth ETF 478.24 58,785.59 0.81% IBIT iShares Bitcoin Trust ETF 436.32 72,774.74 0.60% SMH VanEck Semiconductor ETF 353.04 25,633.68 1.38% ARKK ARK Innovation ETF 277.61 6,817.16 4.07% IVV iShares Core S&P 500 ETF 274.37 591,723.81 0.05% JPLD JPMorgan Limited Duration Bond ETF 266.29 1,755.50 15.17% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change VO Vanguard Mid-Cap ETF -1,110.43 82,798.51 -1.34% BIL SPDR Bloomberg 1-3 Month T-Bill ETF -834.19 43,280.93 -1.93% VOO Vanguard S&P 500 ETF -771.02 687,448.52 -0.11% VTI Vanguard Total Stock Market ETF -632.28 490,691.12 -0.13% VUG Vanguard Growth ETF -498.86 171,572.75 -0.29% FVD First Trust Value Line Dividend Index Fund -470.67 9,043.24 -5.20% IGV iShares Expanded Tech-Software Sector ETF -410.76 11,647.22 -3.53% XLE Energy Select Sector SPDR Fund -390.45 26,959.90 -1.45% VBR Vanguard Small Cap Value ETF -315.35 29,404.45 -1.07% VB Vanguard Small-Cap ETF -306.31 63,111.27 -0.49% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 0.46 9,991.45 0.00% Asset Allocation 74.89 24,555.56 0.30% Commodities ETFs 309.84 219,076.19 0.14% Currency 635.88 146,689.89 0.43% International Equity 1,412.21 1,840,739.01 0.08% International Fixed Income 346.49 300,913.23 0.12% Inverse 309.39 14,478.73 2.14% Leveraged -639.78 138,281.76 -0.46% US Equity 1,432.68 6,995,403.86 0.02% US Fixed Income 2,920.60 1,689,960.65 0.17% Total: 6,802.64 11,380,090.33 0.06% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
SPY Attracts $3.3B as S 500 Nears New Record High
The SPDR S&P 500 ETF Trust (SPY) pulled in $3.3 billion Wednesday, bringing its assets under management to $620.9 billion, according to data provided by FactSet. The inflows came as the S&P 500 closed at 6,092.16, nearly reaching its February record high of 6,147.43. The Invesco QQQ Trust (QQQ) attracted $1.5 billion as the Nasdaq-100 gained 0.21%, while the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) collected $685.7 million. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) pulled in $495.8 million, and the VanEck Semiconductor ETF (SMH) gained $353 million. The Vanguard Mid-Cap ETF (VO) saw outflows of $1.1 billion, while the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) lost $834.2 million and the Vanguard S&P 500 ETF (VOO) experienced outflows of $771 million. U.S. equity ETFs gained $1.4 billion, while U.S. fixed-income ETFs attracted $2.9 billion. International equity ETFs pulled in $1.4 billion. Overall, ETFs gained $6.8 billion for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust 3,307.20 620,923.50 0.53% QQQ Invesco QQQ Trust Series I 1,484.69 344,017.27 0.43% LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 685.71 28,767.07 2.38% HYG iShares iBoxx $ High Yield Corporate Bond ETF 495.75 17,543.07 2.83% IVW iShares S&P 500 Growth ETF 478.24 58,785.59 0.81% IBIT iShares Bitcoin Trust ETF 436.32 72,774.74 0.60% SMH VanEck Semiconductor ETF 353.04 25,633.68 1.38% ARKK ARK Innovation ETF 277.61 6,817.16 4.07% IVV iShares Core S&P 500 ETF 274.37 591,723.81 0.05% JPLD JPMorgan Limited Duration Bond ETF 266.29 1,755.50 15.17% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change VO Vanguard Mid-Cap ETF -1,110.43 82,798.51 -1.34% BIL SPDR Bloomberg 1-3 Month T-Bill ETF -834.19 43,280.93 -1.93% VOO Vanguard S&P 500 ETF -771.02 687,448.52 -0.11% VTI Vanguard Total Stock Market ETF -632.28 490,691.12 -0.13% VUG Vanguard Growth ETF -498.86 171,572.75 -0.29% FVD First Trust Value Line Dividend Index Fund -470.67 9,043.24 -5.20% IGV iShares Expanded Tech-Software Sector ETF -410.76 11,647.22 -3.53% XLE Energy Select Sector SPDR Fund -390.45 26,959.90 -1.45% VBR Vanguard Small Cap Value ETF -315.35 29,404.45 -1.07% VB Vanguard Small-Cap ETF -306.31 63,111.27 -0.49% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 0.46 9,991.45 0.00% Asset Allocation 74.89 24,555.56 0.30% Commodities ETFs 309.84 219,076.19 0.14% Currency 635.88 146,689.89 0.43% International Equity 1,412.21 1,840,739.01 0.08% International Fixed Income 346.49 300,913.23 0.12% Inverse 309.39 14,478.73 2.14% Leveraged -639.78 138,281.76 -0.46% US Equity 1,432.68 6,995,403.86 0.02% US Fixed Income 2,920.60 1,689,960.65 0.17% Total: 6,802.64 11,380,090.33 0.06% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
