SPDR ETFs, the exchange traded funds (ETF) platform of State Street Global Advisors (SSgA), has cross-listed new ETFs on the London Stock Exchange (LSE) including SPDR S&P Euro Dividend Aristocrats ETF (EUDC (GBP), EUDI (EUR), SPDR S&P UK Dividend Aristocrats ETF (UKDV) and SPDR FTSE UK All Share ETF (FTAL). Like all SPDR ETFs globally, these new products are physically replicated.
With the increasing need for income in a low interest rate environment, dividend ETFs are potentially an attractive option for investors looking for diversified access to dividend-paying stocks. The two new dividend ETFs join the recently launched SPDR S&P US Dividend Aristocrats ETF, which gained over $350 million* in assets since its launch last October. The SPDR Dividend Aristocrats ETF suite maintains a premium standard through rigorous screening for high-quality stocks. The underlying securities of the most recent SPDR Dividend Aristocrats ETFs include companies that have maintained a stable or increasing dividend policy over the last ten years. In addition, stocks with dividend yield greater than 10 percent are removed, as history shows that such a high yield is not sustainable and therefore introduces instability.
Eleanor Hope Bell (pictured), head of SSgA’s Intermediary Sales for the UK, says: “With current market volatility and low interest rates, we have experienced substantial demand in our current US and emerging market dividend ETFs. We wanted to expand our dividend set to allow investors access to other regions and we have maintained the high quality standard that makes these products different than anything else on the market. While other dividend ETFs tend to focus only on high dividend yields, our SPDR ETF Dividend Aristocrat ETFs are unique in that they focus on high-quality companies that have a long track record of paying dividends consistently.”
In addition, SPDR ETFs have launched the SPDR FTSE UK All Share ETF, the first physically backed ETF in Europe offering access to the most broad UK index consisting of large, mid and small cap stocks. “The FTSE UK All Share Index is a core institutional benchmark and we see tremendous opportunity for a physical ETF in this space.” SSgA currently runs USD12.7 billion against this index.
The new SPDR ETFs are primarily listed in Germany and also registered for sale in Ireland, Netherlands, France and Italy.
