Daily ETF Watch: SSgA Plans Dividend Fund

Proposed ETF will target dividend-paying components of S&P 500.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

State Street Global Advisors has filed for an ETF that will track the top 80 percent of S&P 500 components in terms of dividend yield. The proposed SPDR S&P 500 High Dividend ETF should not be confused with the PowerShares S&P 500 High Dividend Portfolio (SPHD), which has been trading since 2012 and has accumulated $533 million in assets under management. The two funds are very different in their design, despite their similar names.

SPHD, unlike SSgA’s fund in registration, selects the top 75 components of the S&P 500 by dividend yield and then selects the 50 lowest-volatility names from that list. The SSgA fund, on the other hand, will have much broader coverage and lack a volatility screen.

The filing did not include an expense ratio or ticker, but the fund is slated to list on the NYSE Arca.

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.