S&P High Yield Dividend Aristocrats ETF

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The S&P High Yield Dividend Aristocrats ETF tracks the S&P High Yield Index and offers exposure to large cap dividend-paying companies that exhibit value characteristics in the US equity market. It’s intended for long-term investors; currently holding 60 holdings that tend toward consumer, utilities, and industrial stocks which may not offer enough diversification compared to other value funds.

SDY invests primarily in companies with significant dividend payments that have an impressive track record for growing them over time, unlike other ETFs which invest primarily in small and mid cap companies that meet this criteria. SDY favors larger firms which fulfill this criterion compared to diversifying more widely, providing better stability and higher long-term success chances.

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