A sound investment process and strong management team underpin SPDR Portfolio S&P Sector Netrl Div ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in momentum exposure and yield exposure compared with category peers. Momentum exposure is attributed to holding stocks currently on a winning streak and selling those that are on a downtrend. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Broadcom

Verizon

Home Depot

QUALCOMM

Oracle

Accenture Plc

Cisco Systems

Texas Instruments

McDonald's

UnitedHealth Group

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. SPDR Portfolio S&P Sector Netrl Div ETF earns a High Process Pillar rating. 

The predominant contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The parent firm's five-year risk-adjusted success ratio of 57% also influences the rating. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Their commendable success ratio suggests that the firm does well for investors and that this fund may benefit from that. The parent firm's excellent risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.2 stars, contributes to the process as well.

 This strategy does not differentiate itself from its Large Value category peers in terms of size and style exposure. Analyzing additional factors, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. In recent months, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. This strategy has also displayed a tendency to hold more companies with high dividend or buyback yields than peers over recent years. Higher-yield stocks can provide dependable income, but also have their risks. Dividend payers may cut payouts, for instance, if their earnings fall. Compared with category peers, however, the strategy had less Yield factor exposure in the latest month. In addition, this strategy has not maintained a defensive tilt, demonstrated by low exposure to the quality factor. This means the fund avoids holding firms that are consistently profitable, growing, and have solid balance sheets. Such positions do not tend to provide much ballast for a portfolio. In recent months, the strategy also had less Quality factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology and consumer cyclical relative to the category average by 15.3 and 4.9 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and energy, underweight the average by 7.0 and 3.8 percentage points of assets, respectively. The strategy owns 278 securities and is relatively top-heavy. Of the strategy's assets, 35.5% are concentrated within the top 10 holdings, as opposed to the typical peer's 27.4%.

High

Process

SPDR Portfolio S&P Sector Netrl Div ETF benefits considerably from its team, earning it an Above Average People Pillar rating. There are three managers listed on the fund: Emiliano Rabinovich, Ted Janowsky, Juan Acevedo. The team is well equipped, with an average of 15 years of portfolio management experience. Though they do not manage other products together, managers may manage them individually.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

State Street Global Advisors is under new leadership but continues to move along the positive trajectory established by former leaders. SSGA maintains its Above Average Parent Pillar rating.
Cyrus Taraporevala, who oversaw much of SSGA’s recent transformation, retired from the CEO position in December 2022 and passed the baton to his successor, Yie-Hsin Hung. She inherited a business that’s become more disciplined with its fund lineup. Fees have come down, while product development remains focused on fixed-income and sustainability funds, and many of SSGA’s launches have echoed that intention.
The seeds that SSGA planted over the past several years have been bearing fruit. It built out a low-cost series of portfolio building-block ETFs in the U.S. bearing the “SPDR Portfolio” branding. SSGA launched these later than its industry rivals, so they aren’t as large. But they’re competitive, with solid management and low fees, which helped them consistently take in new money over the past several years.
SSGA continued to overhaul its ETF business in Europe with most of its recent fixed-income and sustainability fund launches. Many of these funds track indexes and charge relatively low fees. With operations in the U.S. and Europe standing on a firm foundation, SSGA will put more focus on its Asia-Pacific business—the smallest regional segment of its business.

Parent

SPDR Portfolio S&P Sector Neutral Dividend ETF

SPDG follows an index that is weighted by market capitalization, comprising US companies from the S&P 1500 Composite Index that have maintained or raised their dividends for at least seven consecutive years.

Today, we are giving the SPDR Portfolio S&P Sector Neutral Dividend ETF a look. SPDG is focused on dividend-oriented stocks and has a yield of around 3%, but so far, it has not garnered much attention, and its AUM is low. The ETF offers a higher yield compared to the S&P 500, and it also provides broader diversification as it can incorporate small- and mid-cap holdings as well.

SPDG: A Newer Dividend-Focused ETF Worth Some Attention

SPDR Portfolio S&P 500 ETF

State Street Global Advisors announced the launch of the SPDR Portfolio S&P Sector Neutral Dividend ETF (NYSE Arca: SPDG). The fund is designed to track the total return performance of the S&P Sector-Neutral High Yield Dividend Aristocrats Index.

State Street Lists SPDR Portfolio S&P Sector Neutral Dividend ETF

State Street

BOSTON--(BUSINESS WIRE)--State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the SPDR® Portfolio S&P Sector Neutral Dividend ETF (SPDG). The fund is designed to track the total return performance of the S&P Sector-Neutral High Yield Dividend Aristocrats Index, which is designed to mirror the sector weights of the S&P Composite 1500® Index and includes companies that have followed a policy of increasing or.

News for SPDR Portfolio S&P Sector Neutral Dividend ETF ETF (SPDG)