Alternative Investments/ESG: New SPDR ETFs For Dividends As Well As ESG

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The three new ETFs have commenced trading on Xetra and Börse Frankfurt since Monday.

Three new ETFs from State Street Global Advisors offer investors exposure to equities with high dividend yields from across global, US and eurozone as well as a good ESG profile.

The SPDR S&P Global Dividend Aristocrats ESG UCITS ETF (GEDV), SPDR S&P US Dividend Aristocrats ESG UCITS ETF (UEDV) and SPDR S&P Euro Dividend Aristocrats ESG UCITS ETF (ZPD9) have listed on the Deutsche Boerse and Euronext Amsterdam on 8 June. (ETF Stream)

SPDR S&P Global Dividend Aristocrats ESG UCITS ETF (GEDV),

This ETF tracks the S&P Global ESG Dividend Aristocrats Quality Income Index.

The index measures the dividend yield-weighted performance of 100 of the highest dividend yielding S&P DJI ESG Score-screened companies within the S&P Global BMI that meet specific ESG and fundamental criteria and have followed a managed-dividends policy of increasing or stable dividends for at least ten consecutive years.

The total expense ratio of the ETF is 0.45%.

SPDR S&P US Dividend Aristocrats ESG UCITS ETF (UEDV)

This index tracks the S&P High Yield ESG Dividend Aristocrats Index.

The index measures the dividend yield weighted performance of S&P DJI ESG Score-screened companies within the S&P Composite 1500 that meet specific ESG criteria and have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 years.

The total expense ratio of the fund is 0.32%.

SPDR S&P Euro Dividend Aristocrats ESG UCITS ETF (ZPD9)

This ETF tracks the S&P Euro ESG High Yield Dividend Aristocrats Index.

The index measures the dividend yield-weighted performance of 40 of the highest dividend yielding S&P DJI ESG Score-screened Eurozone companies within the S&P Europe BMI that meet specific ESG criteria and have followed a managed-dividends policy of increasing or stable dividends for at least ten consecutive years.

The TER of the ETF is 0.30%.

An extension of State Street’s hugely popular dividend strategies in Europe

“S&P originally developed Dividend Aristocrats which is unique from other dividend strategies. European investors have voted with their assets by putting their support into these products,” said Ryan Reardon, SPDR ETF investment strategist at SSGA, to ETF Stream.

“We will see how these strategies are accepted by clients, and if we hear they’d like to see more ESG smart beta, that could be a logical next step.”

“Sustainable dividends meet sustainable investing”

Ludovic Djebali, head of SPDR ETF for France, Belgium and Luxembourg, said: “These new ETFs respond to the growing appetite of investors for inexpensive ESG solutions and will allow them to access a quality return in a ESG framework.”

“The different geographic exposures give investors new tools to improve the diversification of their ESG portfolios: sustainable dividends meet sustainable investing.”

Related Story:    The New Fixed Income SPDR ETF From State Street For ESG Investors

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