| | |||
| |||
| confused man wrote: - quote - > Is there an inherent difference between SPDR's and I-Shares? What aspects
CM,> would lead an investor to invest in one over the other? It seems to me, if I > were investing in these types of ETF's I would go with the SPDR's for the > simple reason they seem to invest in the same sectors as I-Shares and their > chart performance is roughly the same, but SPDR's has higher dividend > yields. > For Example > IYH: div yield = 0.771% > XLV: div yield = 1.214% > IYE: div yield = 1.287% > XLE: div yield = 1.351% The holdings/weightings of those are slightly different and the expenses are different, so it makes sense that the yields are a bit different. I don't think there's a definitive answer to your Q though (whether you should buy the one with the higher yield). The yield difference might just reflect a higher weighting for a couple of the higher dividend-paying stocks in the ETF. That doesn't necessarily mean the long-term performance will be better for that ETF. So check the holdings of each...if there are no meaningful differences, then you might just buy the one with the lower expense ratio. In theory that should win the total-return horse race over the long term. If you do that be sure to check whether there's some kind of fee waiver in place that might expire. Another thing to factor in is the size of the market for the ETF. This is a concern with some of the more obscure ETFs, they're not traded enough, you see spreads and NAV discounts that are noticeable. So look at the shares out for each and if one is tiny it might result in higher spreads and a reduced reported yield (so buy the other). The broad-market ETFs seem well beyond that point but some of the sector ETFs are still kind of small, in terms of shares out. -Tad |
|
#-1
| |||
| |||
| Hello All, Is there an inherent difference between SPDR's and I-Shares? What aspects would lead an investor to invest in one over the other? It seems to me, if I were investing in these types of ETF's I would go with the SPDR's for the simple reason they seem to invest in the same sectors as I-Shares and their chart performance is roughly the same, but SPDR's has higher dividend yields. For Example IYH: div yield = 0.771% XLV: div yield = 1.214% IYE: div yield = 1.287% XLE: div yield = 1.351% There are many other examples of this. So is my thinking flawed? please advise. Thanks, Confused Man |
| Tags |
| ishares, spdr |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| Converting Vanguard mutual fund shares from Investor to Admiral shares Ted: Hello, I have a question about how to enter this particular mutual fund activity in Money. Here is the scenario: - I have Vanguard 500 Index... | Microsoft Money | 11 | 09-02-2006 10:03 PM | |
| Can you issue more shares to cover retired shares? Mark3324: This has to do with Nevada corp, if it matters... First of all, it's my understanding that in accounting practice, a share that is bought back... | Taxes | 8 | 03-24-2005 04:27 AM | |
| Buy vs Add shares David: Can anyone tell me the difference between a "Buy" and an "Add Shares" transaction? I'm entering mutual fund transactions in Money 2004. Thanks.... | Microsoft Money | 3 | 02-28-2004 12:29 PM | |
| SPY (SPDR) vs. S&P index mutual fund Ignoramus10160: Would it be correct to say that buying SPDR's (depositary receipts of an S&P investment trust) is a better idea than investing into a good S&P 500... | Financial Planning | 7 | 02-17-2004 08:57 PM | |
| conversion from class B shares to class A shares Maggi: I am using Money 2000 and cannot find anything about converting shares. Second problem:I decided to enter the transaction as "sell" the class B... | Microsoft Money | 1 | 10-31-2003 10:25 PM | |
| Thread Tools | |
| Display Modes | |
| |