spdr lists two dividend focused etfs in london

SPDR ETFs, the ETF Platform of State Street Global Advisers, has announced the listing of two funds with dividend exposure on the LSE, in the hope of tapping into investors’ hunt for yield.

spdr lists two dividend focused etfs in london

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SPDR has cross-listed the funds as part of its grander strategy to develop a greater presence in Europe and the UK.

The SPDR S&P US Dividend Aristocrats ETF and the SPDR S&P Emerging Markets Dividend ETF were listed in Germany on Monday and then the UK on Thursday.

A spokesperson for the group said it was able to bring the products to market quickly because they mirrored established products in the US.

The funds both invest physically in equities with high dividend yields and are constructed to include a diversified universe of quality stocks with sustainable dividend prices.

The SPDR S&P US Dividend Aristocrats ETF tracks the S&P High Yield Dividend Aristocrats Index, which constists of 60 US stocks from the S&P Composite 1500 Index which have paid an increased dividend for the last 25 years.

It caps individual stock exposure at 4% to ensure diversification.

Meanwhile, the SPDR S&P Emerging Markets Dividend ETF tracks the EM Dividend Opportunities Index, which is made up of around 100 high dividend-yielding, liquid stocks from 20 EM countries that have stable or increasing three-year dividend growth.

In this fund individual stocks are capped at 3% and both countries and sectors are capped at 25% to ensure diversification.

Eleanor Hope-Bell, head of the intermediary business Northern Europe at SSGA, said: "Given the market volatility that resulted from events in 2008 and August this year, together with the current low-yield environment, we expect substantial demand for these two products.

"The S&P High Yield Dividend Aristocrats Index includes high-quality companies that pay consistent dividends, unlike some other dividend indices that tend to focus only on high dividend yields.

"Emerging markets have also advanced enough now to identify a diversified group of stocks that pay relatively high dividends. Together, these two new ETFs provide exposure to a substantial part of the global high yield dividend market."

SPDR now has 29 products listed on European exchanges and plans to launch "plenty" more in the remainder of this year and into the beginning of next, according to a spokesperson for the firm.

SPDR is currently seeking UK reporting status for both its newly-listed ETFs.

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