"The SPDR Portfolio S&P High Dividend ETF ( NYSEARCA:SPYD) is a terrific ETF for investors who want to screen out all the lower-yielding stocks within the S&P 500. What's left behind? Some large-cap names have dividends that are large enough to meet the needs of certain income investors. Today, the yield is hovering around 4.3%, which is quite generous. With a more hands-off approach, the SPYD has a really low expense ratio of 0.07%, which is pretty competitive with your run-of-the-mill index fund."
"With a more hands-off approach, the SPYD has a really low expense ratio of 0.07%, which is pretty competitive with your run-of-the-mill index fund. The SPYD's sector mix is heavily tilted towards real estate, utilities, and financials, with less in the way of tech exposure. The limited tech exposure might actually be a good thing, especially if you're in the belief that it's tech that's causing the S&P 500 to be "fairly highly priced," as Fed Chairman Jerome Powell recently remarked."
Picking the right ETFs and holding them for many years can generate steady distributions and passive income. Selecting individual dividend stocks can enhance portfolio yield, but many passive investors benefit from a core of a handful of high-quality dividend ETFs with optional allocation to a higher-yield premium income ETF. The SPDR Portfolio S&P High Dividend ETF (SPYD) screens out lower-yielding S&P 500 stocks and yields about 4.3% today. SPYD carries a low expense ratio of 0.07%, supporting a hands-off approach. SPYD’s sector allocation leans toward real estate, utilities, and financials with reduced technology exposure, which may be advantageous if tech appears richly priced.
Read at 24/7 Wall St.
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