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SDY is an exchange-traded fund (ETF) designed to follow the S&P High Yield Dividend Aristocrats Index. This ETF provides exposure to large cap stocks that have consistently raised dividend payments for at least 25 consecutive years – providing long-term investors with exposure to companies known for their dividend-paying potential and stable and growing income potential. While SDY may provide exposure, its focus may not suit investors looking for diversification.
The SDY fund boasts low correlation to the overall market and is comprised primarily of consumer, utility, and industrial stocks – helping reduce volatility while increasing long-term returns. Furthermore, its low expense ratio and attractive yield makes this fund an appealing option for investors seeking income generation from their investments.
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