1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Julie Young
Julie Young
Articles (1051) 

New US Large-Cap Value Fund SPDV With 4.13% Dividend Yield

SPDV tracking the S&P 500 Dividend & Free Cash Flow Yield Index with a one-year return of 10.89%

June 04, 2018 | About:

Advisors Asset Management launched the S&P 500 High Dividend Value exchange-traded fund (SPDV) in November 2017 and has been paying steady monthly dividends since the launch. The new ETF is one of two new tracker funds launched by Advisors Asset Management on Nov. 28, 2017 that seek to passively replicate a custom dividend value index. SPDV has been the company’s top performer since the launch with a 2.85% year-to-date total return as of June 4.

SPDV recently reported a dividend of 9.168 cents payable on June 6. The ETF has been reporting an ex-dividend date around the first of each month. The most recent dividend brings the Fund’s dividend yield to 4.13%.

SPDV seeks to identify superior income opportunities in the large-cap equity value universe through a passive, tracker fund approach. The fund uses a customized large-cap value index in the S&P 500 Dividend & Free Cash Flow Yield Index to provide exposure to dividend income opportunities in the space. The replication approach allows the fund to offer a low net expense ratio of 0.29%.

The S&P 500 Dividend & Free Cash Flow Yield Index is a passive, fundamentally-screened index, newly launched by S&P in October 2017. The index uses a fundamental screening methodology to systematically identify top stocks from the S&P 500 that simultaneously have high dividend yields and high free cash flow levels over time for which to make shareholder payouts.

The fund seeks to offer a superior alternative to large-cap and large-cap dividend funds like the SPDR S&P 500 Index ETF (SPY) and the SPDR S&P 500 High Dividend ETF (SPYD), which seek to replicate the S&P 500 and the S&P 500 High Dividend Index respectively. SPDV also offers an affordable entry price at $26.76.

Year to date, SPDV has been outperforming its close competitor SPYD while just lagging slightly behind SPY. Hypothetical returns show the new fund outperforming SPYD on a one-year basis with a return of 10.89%. As the fund gains longevity, it appears likely to become a top performer in the high income, U.S. large-cap value universe.

Source: Morningstar and S&P

The AAM S&P Emerging Markets High Dividend Value ETF

In November, Advisors Asset Management also launched the AAM S&P Emerging Markets High Dividend Value ETF (EEMD). EEMD offers a high income equity fund for investors seeking slightly higher risk and return through investment in emerging market equities.

Source: Morningstar and S&P

Disclosure: I own SPDV.

About the author:

Julie Young
Julie Young is a financial writer with comprehensive experience in the financial services industry. She writes about investments, investment products, financial market news and economic trends. Julie has a Master of Science in finance from Boston College and a Bachelor of Science in finance from the University of Arkansas.

Rating: 4.7/5 (3 votes)



Please leave your comment:

Performances of the stocks mentioned by Julie Young

User Generated Screeners

consciousinvestor311higher debt expensive
doniemaherScreen #35 - ROC>25%, Div>3%
DANGORDON1-21-19 P/E<14
efredbac10yr Low PE
mathew94Insider Buys
cspunarJuniors 21Jan19
daftheaderasian growth plus dividend
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat