SPYD tracks the S&P 500 High Dividend Index, which holds the 80 stocks in the S&P 500 with the highest dividend yields and weights them by yield rather than by market capitalization. As a result the portfolio has large weights in real estate, financials, utilities, energy and consumer staples, and little technology. Because the screen is based on current yield, it can include companies with high yields because of falling prices or risks to future dividends. Returns have differed substantially from the S&P 500.
