SYI - SPDR MSCI Australia Select High Dividend Yield Fund

[Bill M]

SPDR MSCI Australia Select High Dividend Yield Fund.

A new ETF has come to my notice, looks interesting and could be a good way of buying a reasonable dividend yield.

Here is the facts sheet:

http://www.spdr.com.au/fund_doc/fund_doc_20100925_133354/SPDR_SYI_Factsheet_Oct_10.pdf

 

[ParleVouFrancois]

It seems okay if what you're after is diversification and safety. That being said it appears to be very heavily weighted towards the banks and other financials, with about 55% allocated to these sectors, with some concerns about Australia's housing prices in relation to income these financial shares profits may come under pressure as people default. However that is a bearish view on the economy, if you're bullish on Australia due to it being a "special situation" property wise, then this ETF looks to be the goods for a diversified and cheap way to invest in a bunch of shares. Good for a set and forget investment imo.

 

[So_Cynical]

it appears to be very heavily weighted towards the banks and other financials, with about 55% allocated to these sectors

Massively weighted towards the banks and insurance...however at the bottom end of the weightings we have some Smoky's! PRY, CAB, SIP and APA Among the left field stand-outs.

http://www.spdrs.com.au/etf/fund/fund_holdings_SYI.html

 

[Pager]

I bought a parcel for my Super recently, it is heavily weighted towards Banks and financials AT PRESENT (about 50%) and I would imagine going forward its going to be weighted to the sector paying the highest dividends, but that’s the way the fund is run to invest in those blue chip company’s excluding property trusts paying the best dividends and with Dividend sustainabilityabilty and currently that means a sizable allocation to the financials, pays quarterly dividends and currently the yield is about 6.5% most of which is franked, biggest holdings are currently the big 4 Banks, AMP, Woolworths, Telstra, Amcor.

For a SMSF I thought it was a good addition

 

[Dona Ferentes]

and, a decade later, and the holdings are completely changed around from financials and industrials . With 32 holdings, the Top 5 are:

1. Fortescue Metals Group FMG with an 11.37% portfolio weighting
2. BHP Group BHP with a weighting of 10.45%
3. Rio Tinto RIO with a weighting of 10.01%
4. Wesfarmers WES with a weighting of 8.03%
5. Mineral Resources MIN with a weighting of 6.52%

That is a pretty fair heft of mining exposure.... probably good for the next season, but longer term? cyclical businesses!!

Dividend distribution yield of 7.48% and there is franking attached, which gives this yield an additional kick.

The conventional wisdom is that investors usually take an overall performance hit if they want to maximise dividend income. SYI has returned 13.15% over the past 12 months (as of 31 December). It has also averaged a return of 11.19% per annum over the past 3 years, and 6.41% over the past five yrs.

The iShares ASX 200 ETF has given investors a return of 17.11% over the past year. It has also averaged a return of 13.51% over the past 3 years, and 9.62% over the past 5.

 

[divs4ever]

TOP TEN Holdings CODE	COMPANY	ASSET
FMG	Fortescue Metals Group Ltd	10.56%
BHP	BHP Group Ltd	9.71%
RIO	Rio Tinto Ltd	9.43%
WES	Wesfarmers Ltd	8.48%
MIN	Mineral Resources Ltd	5.90%

CODE	COMPANY	ASSET
AZJ	Aurizon Holdings Ltd	4.31%
COL	Coles Group Ltd	4.21%
AST	AusNet Services Ltd	4.19%
JBH	JB Hi Fi Ltd	4.08%
MPL	Medibank Private Ltd	4.04%

Total Holdings
33

Distinct Portfolio
Yes
Portfolio Turnover
44.22%

i hold SYI

has a habit of being in the M&A action , currently BHP and AST are featured in the activity

 

[InsvestoBoy]

Yield hasn't outperformed as a factor in a while. Total return is less than the index, which might be fine if you invest for the income and not to reinvest divs.

 

[divs4ever]

i reinvested ( DRP) the divs

i bought in July 2011 @ $23.35

reduced in November 2014 @ $30.48

added extra in June 2016 @ $25.46

added extra in December 2018 @ $24.92

added extra in September 2020 @ $24.52

now true the current div. paid today is uninspiring

and with a close today of $31.36 i probably should have considered reducing ( but i didn't )

remember this ETF turns over a fair amount of the portfolio each year , and is traded close to the NTA

should i have reduced today , or sit and wait for the AST and BHP moves to play out , time will tell

currently this ETF is a nice counter-balance to MVB which focuses strictly on the ASX's biggest seven banks ( the big 4 + MQG , BEN and BOQ ) ( which is NOT DRPed )

 

[Belli]

Yield hasn't outperformed as a factor in a while. Total return is less than the index, which might be fine if you invest for the income and not to reinvest divs.

The surprising about this ETF is its franking levels are lower sometimes compared with its bigger sibling STW. never a straightfowrward comparison when a number of factors are taken into account when looking at items beyond cash received for each distribution.

 

[Belli]

SYI Components of distribution

Previous distributions.

Compared with those of VAS

SYI isn't a broad based EFT at all but a concentrated one with less than 40 holdings. The antithesis to the actual concept of index investing by the look of it designed to draw in those who possibly fall for a yield trap.

 

[divs4ever]

but at around $25 to $30 a unit SYI has been a bumpy but profitable ride ( at least for me )

Total Holdings 33 ( currently ) Portfolio Turnover 44.22%
and of course the fees are higher ( but not up into the Wilson LIC range ) @ 0.35%

Top 10 Holdings As of 31 May 2022, 10:00 am AEST​

	COMPANY	ASSET
BHP	BHP Group Ltd	16.64%
FMG	Fortescue Metals Group Ltd	10.27%
RIO	Rio Tinto Ltd	10.02%
MIN	Mineral Resources Ltd	6.63%
WES	Wesfarmers Ltd	6.26%

Top 10 Holdings

CODE	COMPANY	ASSET
AZJ	Aurizon Holdings Ltd	4.63%
COL	Coles Group Ltd	3.82%
WOR	Worley Ltd	3.67%
JBH	JB Hi Fi Ltd	3.61%
MPL	Medibank Private Ltd	3.61%

the major detractor for me is of the Top Ten the only shares i DON'T hold directly are RIO , AZJ , JBH , and MPL so run extra concentration risk

cheers

 

[Belli]

I don't think you really get what is actually occurring. Your problem; not mine.

 

[divs4ever]

no i just have a different strategy i hold VAS as an insurance against poor ( individual ) stock selection and 'high yield ETFs ' for increased returns at the expense of higher MER