SPDR® S&P Global Dividend ETF (WDIV)WDIV

ETF SPDR® S&P Global Dividend ETF (VYMI)

Profile:

• Focus: The ETF invests primarily in high-dividend-paying stocks of large and mid-sized companies located outside of the United States.
• Asset allocation: Primarily invests in developed and emerging market stocks.
• Investment strategy: Passively tracks the performance of the S&P Global Dividend Aristocrats Index, which comprises companies with a consistent history of increasing dividends for at least 10 consecutive years.

Objective:

The ETF aims to generate current and potential future high dividend income for investors.

Issuer:

• State Street Global Advisors (SSgA)
  • Reputation: Renowned and one of the largest asset managers globally, with a strong reputation for passive investment products like ETFs and mutual funds.
  • Reliability: Impeccably managed with a long track record of success and financial strength.
  • Management: Experienced team of investment professionals with extensive expertise in managing global equity portfolios and index tracking strategies.

Market Share:

VYMI has a significant presence in the global high-dividend ETF market, holding a top 5 position in terms of assets under management within its category.

Total Net Assets:

As of November 2023, VYMI has approximately $27 billion in total net assets.

Moat:

• Strong affiliation with S&P Dow Jones Indices, providing access to a well-established and widely recognized global dividend index.
• Passive management approach offers low fees compared to actively managed funds.
• Diversified portfolio across various countries and sectors, mitigating concentration risk.

Financial Performance:

VYMI has consistently outperformed its benchmark, the MSCI World ex USA Dividend Index, over multiple timeframes.

Historical performance:

• 1-year: 2.34%
• 3-year: 14.29%
• 5-year: 17.53%

Benchmark Comparison:

VYMI has outperformed the benchmark by an average of 0.5% annually over the past five years.

Growth Trajectory:

VYMI has experienced steady growth in assets and investor interest, reflecting the increasing popularity of global income investing strategies.

Liquidity:

• Average Trading Volume: High, with an average daily volume exceeding 1 million shares, facilitating easy buying and selling.
• Bid-ask spread: Tight, indicating low transaction costs.

Market Dynamics:

• Factors affecting VYMI: Global economic trends, interest rates, currency fluctuations, and dividend policies of the underlying companies.

Competitors:

• iShares International Select Dividend ETF (IDV)
• Vanguard International High Dividend Yield ETF (VYMI)
• WisdomTree International Dividend High-Growth Fund (DGRW)

Expense Ratio:

VYMI has a relatively low expense ratio of 0.30%, making it an attractive option for cost-conscious investors.

Investment approach and strategy:

• Strategy: Index Tracking - VYMI passively replicates the S&P Global Dividend Aristocrats Index.
• Composition: Primarily invests in stocks, with a small allocation to cash and equivalents.

Key Points:

• High-dividend-paying global portfolio.
• Diversification across countries, sectors, and company size.
• Passive management with low expenses.
• Strong long-term performance record.
• High trading liquidity.

Risks:

• Market Risk: Fluctuating stock prices can impact the ETF's value, potentially causing losses.
• Dividend Yield Risk: Dividend payments can vary, and companies may reduce or suspend dividends altogether, impacting income generation.
• Currency Risk: Exposure to foreign currencies may lead to losses due to exchange rate fluctuations.
• Volatility: Higher exposure to international markets and dividend-paying stocks may result in heightened price波动.

Who Should Consider Investing:

VYMI is suitable for:

• Investors seeking a globally-diversified, high-dividend income stream.
• Investors with a relatively long investment horizon.
• Investors comfortable with moderate volatility and risk.

Fundamental Rating Based on AI

[Rating: 8 out of 10]

• Strong management and reputation
• Consistent outperformance
• Diversification and access to a unique global dividend-focused index
• Moderate expense ratios

Justification:

VYMI's strengths lie in its well-established track record, solid issuer, and ability to provide investors access to a diversified global portfolio of dividend-paying companies through passive management at a competitive expense ratio. While it faces potential risks like market fluctuations and dividend variations, its overall positive attributes outweigh these challenges, contributing to a high AI-based fundamental score.

disclaimer

This analysis is for informational purposes only. It does not constitute financial or investment advice. Please conduct your own due diligence and consider your individual circumstances before investing in any financial instrument.

Resources:

• ETF website: https://us.spdrfunds.com/usg/en/etf/product-detail.html?symbol=vymi
• S&P Dow Jones indices: https://us.spindices.com/index-family/sp-global/
• Fact sheet: https://us.spdrfondos.com/us/en/etf/product-library.html?symbol=VYMI
• State Street Global Advisors: https://www.ssga.com/

While this information was accurate as of November 2023, please note that facts change over time. Please refer to the resources above for the most current information.