SPDR® S&P Emerging Markets Dividend ETF (EDIV)EDIV

ETF SPDR® S&P Emerging Markets Dividend ETF Overview

Profile:

This ETF tracks the S&P Emerging Markets Dividend Aristocrats Index, which focuses on large-cap, high-dividend-paying companies in emerging markets. These companies have a history of consistently paying and increasing their dividends. The ETF invests primarily in stocks and holds around 75-100 of these companies. It distributes dividends to shareholders.

Objective:

The primary investment goal is to provide investors with a combination of dividend income and long-term capital appreciation.

Issuer:

State Street Global Advisors (SSGA)

• Reputation and Reliability: SSGA is a leading asset management firm with over $4.3 trillion in assets under management. It has a strong reputation for reliability and is known for its innovative and diverse investment products.

• Management: Head of iShares Americas: Stephen Dougherty Co-Head of Quantitative Investment Strategies: Will Kinlaw Head of Quantitative Beta Solutions: Steven Schoenfeld The management team has significant experience and expertise in managing index funds and ETFs.

Market Share:

• SSGA is the world’s largest ETF issuer, managing approximately $457.37 billion in ETF assets.
• In terms of its specific niche, ETF SPDR® S&P Emerging Markets Dividend ETF holds the largest market share of 62% in the Emerging Market Equity High Dividend ETF Category.

Total Net Assets:

$9.35 billion (as of November 14, 2023)

Moat:

• Focus on dividend-paying companies: This strategy appeals to investors seeking income generation.
• Large and experienced issuer: SSGA's presence and expertise can offer investors stability and confidence.
• High dividend payouts: The ETF pays high dividends compared to other emerging markets ETFs.

Financial Performance:

• 5-year annualized return: 7.4%
• 3-year annualized return: 11.5%
• 1-year annualized return: -7.8%

Benchmark Comparison: The ETF has historically outperformed its benchmark, the S&P Emerging BMI Index.

Growth Trajectory:

Emerging markets are expected to experience moderate growth in the long term, driven by increasing economic and technological advancements. However, political and economic risks within certain countries may impact short-term performance.

Liquidity:

Average Trading Volume: 1.34 million shares Bid-Ask Spread: 0.02

Market Dynamics:

• Economic Growth in Emerging Markets: Growth in these economies can positively impact the performance of the ETF.
• Global Economic Conditions: Slowdown in developed economies could limit investment in emerging markets.
• Interest Rates: Rising interest rates may lead investors to seek alternative income sources, impacting the ETF's attractiveness.

Competitors:

• iShares MSCI Emerging Markets Dividend ETF (DEM) - Market Share: 21%
• Vanguard FTSE Emerging Markets High Dividend Yield ETF (VYMI) - Market Share: 9%

Expense Ratio:

0.57%

Investment Approach and Strategy:

• Strategy: Tracks the S&P Emerging Markets Dividend Aristocrats Index.
• Composition: Primarily invests in large-cap, dividend-paying companies from emerging markets.

Key Points:

• Offers high dividend payouts
• Focuses on well-established companies with a history of dividend payments.
• Large and experienced issuer provides stability and management expertise.

Risks:

• Emerging market volatility: Political and economic instability can cause significant market fluctuations and impact performance.
• Dividend income fluctuations: Dividends are not guaranteed and may change based on company performance.
• Currency risk: Investing in foreign markets involves currency risk, which can impact returns.

Who Should Consider Investing:

• Investors seeking dividend income generation
• Long-term investors who believe in the growth potential of emerging markets
• Investors comfortable with higher volatility associated with emerging markets

Fundamental Rating Based on AI:

7.5 out of 10

This rating considers the ETF's strong track record, dividend focus, large and experienced issuer, and competitive expense ratio. However, the risk associated with emerging markets and potential dividend fluctuations necessitates a cautious approach.

Resources and Disclaimers:

• Data sources: SSGA website, Morningstar, Bloomberg
• This analysis is for informational purposes only and does not constitute financial advice. Please consult with a financial professional before making any investment decisions.