Is This Simple Index Fund a Millionaire Maker?
The SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) is one of many dividend-focused exchange-traded funds (ETFs) income investors can buy today. What sets it apart from the rest is the simplicity of its stock selection approach. While it is often a good idea to keep things simple when investing, if you buy this ETF, you also need to ensure that you understand the limitations of its simple approach.There are really just two factors that are important to understand when you are looking at the SPDR Portfolio S&P 500 High Dividend ETF. The first is that it selects stocks from the S&P 500 index (SNPINDEX: ^GSPC). This is important because the S&P 500 is a broad market performance gauge. It contains roughly 500 stocks that represent around 80% of the total U.S. market capitalization. The companies in the index tend to be large and well followed on Wall Street.Image source: Getty Images.Continue reading
The SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) is one of many dividend-focused exchange-traded funds (ETFs) income investors can buy today. What sets it apart from the rest is the simplicity of its stock selection approach. While it is often a good idea to keep things simple when investing, if you buy this ETF, you also need to ensure that you understand the limitations of its simple approach.
There are really just two factors that are important to understand when you are looking at the SPDR Portfolio S&P 500 High Dividend ETF. The first is that it selects stocks from the S&P 500 index (SNPINDEX: ^GSPC). This is important because the S&P 500 is a broad market performance gauge. It contains roughly 500 stocks that represent around 80% of the total U.S. market capitalization. The companies in the index tend to be large and well followed on Wall Street.
Image source: Getty Images.
