SSGA cross-lists euro-hedged US ‘Dividend Aristocrats’ ETF on Borsa Italiana

Apr 21st, 2020 | By | Category: Equities

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State Street Global Advisors (SSGA) has cross-listed the SPDR S&P US Dividend Aristocrats EUR Hedged UCITS ETF on Borsa Italiana.

SSGA cross-lists euro-hedged US Dividend Aristocrats ETF on Borsa Italiana

The ETF provides exposure to US equities that have increased their dividends every year for at least 20 consecutive years.

The fund provides exposure to US-listed companies with sustainable dividend yields while hedging currency exposure between the US dollar and the euro.

The new listing trades on Borsa Italiana under the ticker USDE IM.

The ETF is linked to the S&P High Yield Dividend Aristocrats EUR Dynamic Hedged Index which selects its constituents from the S&P Composite 1500 Index.

The parent index includes all stocks in the S&P 500, S&P 400, and S&P 600, covering approximately 90% of the total US market capitalization.

To be eligible for selection, a company must have increased its dividends every year for at least 20 consecutive years. According to SSGA, these stocks have both capital growth and dividend income characteristics, as opposed to stocks that are pure yield, or pure capital oriented.

There are currently 119 stocks in the index which has an indicated dividend yield of 3.85%.

Constituents are weighted by dividend yield subject to a 4% limit per stock. The index is reconstituted annually and rebalanced quarterly.

The index is 100% hedged to euros on a monthly basis by selling US dollars forward at one-month forward rates. It includes a mechanism that ensures the index does not become over-hedged beyond 105%, or under-hedged below 95%, by utilizing an intra-month adjustment if these thresholds are breached.

The euro-hedged version of the ETF comes with an expense ratio of 0.40%, while the non-hedged fund costs 0.35%.

There is approximately $2.5 billion in assets under management across all the ETF’s share classes (hedged and non-hedged).

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