Find out what the ETF does
WDIV invests in shares of global companies that have a strong track record for paying dividends to their investors (i.e. they have paid a dividend for at least 10 years in a row).
An investor could use WDIV to invest in shares that have — in the past — paid high and regular dividends to their shareholders. While this comes with the risks of the sharemarket, investors with a long-term investment horizon (10+ years) might see it as an alternative source of passive income.
WDIV’s FUM meets our hurdle
The SPDR WDIV ETF had $350.39 million of money invested when we last pulled the monthly numbers. Given WDIV’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Pay attention to yearly costs & fees
SPDR charges investors a yearly management fee of 0.50% for the WDIV ETF. This means that if you invested $2,000 in WDIV for a full year, you could expect to pay management fees of around $10.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Our takeaway
If you’re thinking about investing in WDIV, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free SPDR WDIV report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.
