The SPDR S&P US Dividend Aristocrats ETF has raised nearly USD100 million just 10 trading days after its launch in Europe. The ETF, which invests physically in equities with high dividend yields, was launched on the Deutsche Borse on 17 October and was cross-listed on the London Stock Exchange on 19 October.
It 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. Individuals stocks are capped at 4 per cent to ensure diversification.
Eleanor Hope-Bell (pictured), head of the Intermediary Business Northern Europe, says: “This product has proved to be highly popular. It is a first to market product in Europe and has captured the demand from investors searching for income and a high quality equity index because of their concerns over volatile markets.”
Leslie Gent, Global Head of Research and Product Solutions at Coutts, says: "During the ongoing market volatility, we’ve seen a strong demand from clients for investment products which offer a steady cash flow and consistent yields.
"We were early investors in the SPDR S&P US Dividend Aristocrats ETF and selected it as a best in class product. We were particularly impressed by the product’s strong track record in the US and attracted by its physically backed methodology and low fees."