For investors seeking momentum, SPDR Portfolio S&P 500 High Dividend ETF SPYD is probably on radar. The fund just hit a 52-week high and is up 16% from its 52-week low of $37.92 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SPYD in Focus
SPDR Portfolio S&P 500 High Dividend ETF provides exposure to stocks with a high level of dividend income and the opportunity for capital appreciation. Utilities, financials, energy and real estate are the top four sectors with double-digit exposure each. SPDR Portfolio S&P 500 High Dividend ETF charges 7 basis points in fees (see: all the Large Cap Value ETFs here).
Why the Move?
The dividend corner of the broad investing world has been an area to watch lately, given the bouts of volatility and uncertainty in the stock market. This is because dividend-focused ETFs offer safety in the form of payouts and stability through mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are major sources of consistent income for investors when returns from equity markets are at risk. Further, these products are proven outperformers over the long term.
More Gains Ahead?
It seems that SPYD has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
