SDY’s top holdings
SPDR S&P Dividend ETF (SDY) seeks to replicate the performance of the S&P High Yield Dividend Aristocrats Index. The top five holdings of SDY are high-dividend–yielding stocks AT&T (T), HCP (HCP), Chevron (CVX), Realty Income (O), and National Retail Properties (NNN). SDY’s top five holdings represent 10.5% of its total portfolio, significantly impacting its market performance.
SDY’s market performance with respect to VIX
The above graph compares the performance of SDY in the market in comparison with the S&P 500 (SPY) and the CBOE Volatility Index (VIX). The figure gives a pictorial representation of the price movement of $100 invested simultaneously on January 1, 2015, in both SDY and SPY.
Clearly, SDY has underperformed in the market and has been more affected than SPY by the rise in the volatility index. SDY has given total year-to-date (or YTD) returns of 0.9%, which is less than the market’s YTD return of 3.3%.
AT&T is highest-weighted holding in SDY’s portfolio. It has underperformed in the market, with a negative trailing-12-month return of 4.1%. HCP and CVX have also performed negatively in the market, with negative trailing-12-month returns of 19.3% and 21.4%, respectively.
Among SDY’s top five holdings, Realty Income and National Retail have performed positively, with annual trailing-12-month returns of 6.6% and 0.90%, respectively. Among the ETF’s total portfolio of 97 holdings, 54 have performed positively in the market, whereas the other 43 have given negative returns to their investors.
In the next part, we’ll take a look at a fund flow and volume comparison of SDY and another high-dividend–yielding ETF, the First Trust Value Line Dividend ETF (FVD).