SPDR ETF, the exchange-traded funds platform of State Street Global Advisors (SSgA), has launched two new ETFs on the London Stock Exchange.
The SPDR S&P US Dividend Aristocrats ETF and the SPDR S&P Emerging Markets Dividend ETF both invest physically in equities with high dividend yields.
Commenting on the launches, Eleanor Hope-Bell, head of the Intermediary Business Northern Europe at SSgA said: "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."
The SPDR S&P US Dividend Aristocrats ETF tracks the S&P High Yield Dividend Aristocrats Index, which consists of 60 US stocks from the S&P Composite 1500 Index that have paid an increased dividend every year for the last 25 years. Individual stocks are capped at 4% to ensure diversification.
The SPDR S&P Emerging Markets Dividend ETF tracks the S&P Emerging Markets Dividend Opportunities Index, which consists of approximately 100 high dividend-yielding, liquid stocks from 20 emerging market countries that have stable or increasing three-year dividend growth.
Individual stocks are capped at 3% and both countries and sectors are capped at 25% to ensure diversification.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November