Differentiated Solutions

Investing in Smart Beta ESG ETFs

Dividend Aristocrats ESG funds combine sustainability criteria with stable dividends to create the next generation of income investment. Investors can now access both quality income and an ESG overlay on Global, US and European exposures.

Navigate Market Challenges with Dividend Aristocrats

Markets continue to face challenges around inflation, rising interest rates and softening growth. Hear from Ryan Reardon, SPDR ETFs and Ari Rajendra, S&P Dow Jones Indices on how the defensive, low-beta bias of Dividend Aristocrats can help investors in this environment.

Video (02:11)

Transcript

Dividend Aristocrats

Dividend investing requires more than just yield—quality matters, too.

The SPDR Dividend Aristocrats ETFs source quality yield by focusing on companies with a long, consistent history of paying dividends. Additional filters, such as maximum payout ratio, help to further ensure that the companies in the Dividend Aristocrats are of the highest order.

Smart Beta ESG ETFs

ESG Screens

The four pillars of stock selection

1

Exclusions Based on ESG Score

Companies with an S&P DJI ESG score that falls within the worst 25% of S&P DJI ESG scores are excluded from the ESG index.

2

Exclusions Based on Business Activities

Companies that engage in specific activities with respect to Controversial Weapons, Thermal Coal and Tobacco Products, as determined by Sustainalytics, are excluded from the ESG index.

3

Exclusions Based on Business Principles

Companies with disqualifying (bottom 5%) United Nations Global Compact (“UNGC”) scores, as determined by Arabesque, are excluded from the ESG index.

4

Exclusions Based on Controversies

Companies flagged as being involved in an ongoing controversy, as determined by the Index Committee using SAM’s Media and Stakeholder Analysis (“MSA”), are excluded from the ESG index.

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