Is WDIV a good ETF?
WDIV is the State Street SPDR S&P Global Dividend ETF from State Street. It tracks the S&P Global Dividend Aristocrats Index. We classify it under Intl and Dividend. With about $396 million in assets it is a solidly established fund. Listed on the ASX since 2013-11-18 (almost 13 years ago).
On a total-return basis, WDIV has delivered 7.98% a year over 10 years (ranked 64th of 108 ETFs we track), 9.98% a year over 5 years (ranked 53rd of 188 ETFs we track), 15.19% a year over 3 years (ranked 58th of 226 ETFs we track), and 12.94% a year over 1 year (ranked 94th of 308 ETFs we track).
The management fee of 0.35% is reasonable. That's cheaper than the typical 0.54% for similar ETFs. If cost is your priority, VGS (0.18%), SYI (0.2%), and IHD (0.22%) cover similar ground for less. It pays a high 10.37% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 10.74%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.57 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is moderate at about 35% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Strengths
- Low-cost: a 0.35% management fee keeps more of the return in your pocket.
- High 10.37% income yield — good for investors who want regular cash flow.
Things to watch
- Cheaper alternatives exist: VGS, SYI, and IHD.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What WDIV's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
Targets higher-yielding, cash-generative companies. Popular with retirees and income investors, and in Australia often comes with valuable franking credits.
- Market regime
- Tilts toward 'value' sectors such as banks, resources and utilities. Can lag in growth-led bull markets and concentrate risk, but tends to be more defensive when markets fall.
- In a portfolio
- Good for investors who want income now. Note the higher distributions are taxable each year, which is less efficient for those in higher brackets and in the accumulation phase.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.