In my existing income-generating portfolio, I have investments in Singapore banks, Real Estate Investment Trusts (REITs), and Singapore Savings Bonds. These have been reliable sources of steady income.
I’m now looking to expand my portfolio to include dividend-paying stocks from the U.S. market. A potential approach is to invest in dividend-focused ETFs. The SPDR® S&P® U.S. Dividend Aristocrats UCITS ETF (UDVD) seems like a suitable addition to diversify my portfolio.
In this review, I’ll delve into the fundamentals of UDVD.
Updated 22 Oct 2026: fund figures below were checked on 22 Oct 2026 against State Street’s official UDVD page (the fund is now called the State Street® SPDR® S&P® U.S. Dividend Aristocrats UCITS ETF (Dist)). Each figure shows its own “as of” date. All amounts are in USD.
Understanding the Index
UDVD tracks the S&P High Yield Dividend Aristocrats Index. In plain terms, the index picks stocks from the S&P Composite 1500 that have increased their dividends every year for at least 20 consecutive years. The qualifying stocks are then weighted by their dividend yield, so higher-yielding companies get a bigger share, with caps so that no single stock dominates. The result is a portfolio aimed at both dividend income and some capital growth, rather than pure yield.
Fundamentals of UDVD ETF
| Total fund assets | $3,902.91 million (21 Oct 2026) |
| NAV (USD) | $86.20 (21 Oct 2026) |
| Number of holdings | 155 (20 Oct 2026) |
| Total expense ratio (TER) | 0.35% |
| Distribution yield (12-month) | 2.02% (21 Oct 2026) |
| Distributions | Quarterly |
| Domicile | Ireland (UCITS) |
| ISIN | IE00B6YX5D40 |
UDVD is a fund that invests entirely in the US stock market and holds a total of 155 different equities as of 20 Oct 2026.
Top 10 Holdings
| Holding | % of fund |
|---|---|
| Accenture Plc Class A | 3.85% |
| Verizon Communications Inc. | 2.89% |
| Chevron Corporation | 2.16% |
| Realty Income Corporation | 1.96% |
| PepsiCo Inc. | 1.86% |
| Medtronic Plc | 1.83% |
| Target Corporation | 1.68% |
| Automatic Data Processing Inc. | 1.57% |
| Kenvue Inc. | 1.56% |
| NIKE Inc. Class B | 1.54% |
| Total | 20.90% |
From the table above, we can see that UDVD’s top holdings span a variety of sectors, including technology, communication services, energy, real estate, consumer goods and healthcare, indicating a diversified approach to investment.
Also, the top ten holdings collectively make up 20.90% of the fund, suggesting a moderate concentration. This indicates a balance between relying on key performers and maintaining diversification.
Sector allocation
| Sector | % of fund |
|---|---|
| Industrials | 18.36% |
| Consumer Staples | 15.95% |
| Utilities | 12.89% |
| Financials | 12.16% |
| Information Technology | 9.26% |
| Health Care | 8.44% |
| Materials | 7.27% |
| Consumer Discretionary | 5.09% |
| Real Estate | 3.85% |
| Energy | 3.84% |
| Communication Services | 2.89% |
The UDVD fund strategically diversifies across the U.S. stock market, focusing on stability and growth.
Industrials and Consumer Staples dominate, emphasising essential services and goods. Utilities and Financials, known for steady dividends, have notable weights, while Information Technology, Health Care and Materials add diversity.
Consumer Discretionary, Real Estate and Energy have smaller weights, and Communication Services has the smallest presence.
Overall, UDVD balances stable, dividend-yielding sectors with growth-oriented ones, aiming to provide a mix of income and capital appreciation for investors.
Performance
| Period | Return |
|---|---|
| 1 year | +6.77% |
| 3 years (annualised) | +10.79% |
| 5 years (annualised) | +6.80% |
| 10 years (annualised) | +8.40% |
| Since inception, Oct 2011 (annualised) | +10.42% |
| Year | Return |
|---|---|
| 2016 | +19.48% |
| 2017 | +15.54% |
| 2018 | -3.19% |
| 2019 | +22.84% |
| 2020 | +1.29% |
| 2021 | +24.74% |
| 2022 | -0.99% |
| 2023 | +2.02% |
| 2024 | +8.00% |
| 2025 | +7.73% |
| 2026 (to 30 Sep) | +6.91% |
Based on State Street’s 10-year cumulative return of 123.94%, $10,000 invested in UDVD at the end of Sep 2016 would have grown to about $22,394 by 30 Sep 2026.
Looking at the annual returns of the UDVD fund, it’s evident that the fund has shown resilience, with its worst calendar year in the last decade registering a modest drawdown of -3.19% (2018). Conversely, during its best years, the fund achieved impressive returns, peaking at 24.74% (2021).
Dividend Yield
The UDVD ETF has a distribution yield of 2.02% (12-month payouts divided by NAV) as of 21 Oct 2026. Dividends are paid every quarter.
Dividend Growth
State Street’s fund page doesn’t currently show a year-by-year payout history, so I haven’t updated this table. These are the figures I took from SSGA when I first wrote this review in Nov 2023:
| Year | Dividend Payout | Annual Payout Growth (YoY) |
|---|---|---|
| 2022 | 1.4799 | -3.26% |
| 2021 | 1.5298 | 11.49% |
| 2020 | 1.3721 | -6.35% |
| 2019 | 1.4652 | 71.95% |
| 2018 | 0.8521 | -9.22% |
| 2017 | 0.9386 | -11.69% |
| 2016 | 1.0629 | 76.77% |
| 2015 | 0.6013 | -33.11% |
| 2014 | 0.8989 | 26.66% |
| 2013 | 0.7097 | 19.62% |
| 2012 | 0.5933 | N/A |
The dividend payout amounts and annual payout growth from 2012 to 2022 demonstrate notable variability and volatility. Key points include:
- Dynamic Dividend Distribution: The dividend amounts have fluctuated significantly, suggesting a responsive dividend policy influenced by earnings changes, strategic decisions, and market conditions. The highest payout was in 2021 (1.5298), and the lowest in 2012 (0.5933).
- Inconsistent Annual Growth: The growth rates have been highly volatile, with no clear upward or downward trend. Notable peaks occurred in 2016 (76.77%) and 2019 (71.95%), indicating potential periods of strong performance. Sharp declines, particularly in 2015 (-33.11%), suggest financial challenges or policy changes.
- Overall Upward Movement: Despite fluctuations, there is an overall upward movement in dividend payouts from 2012 (0.5933) to 2021 (1.5298). This suggests a general trend of increasing dividend distributions over the decade.
Expense Ratio
The total expense ratio stands at 0.35%, which is a little high for an exchange-traded fund (ETF).
If you invest $100,000 with a 0.35% expense ratio, your annual fee would be $350.
Now, let’s say your investment grows to $200,000. With the same 0.35% expense ratio, your annual fee would then be around $700.
So, as your investment grows over the years, the amount you pay in fees also increases because it’s a percentage of your total investment. This is an important factor to consider, as while the percentage stays the same, the actual dollar amount you’re paying will go up as your portfolio increases in value.
Who Should Consider Investing in UDVD?
Risk Tolerance: Investors with a moderate risk tolerance may find UDVD appealing. The fund’s resilience in market fluctuations and its focus on dividend aristocrats suggest a stable investment. However, its history of volatile dividend growth rates indicates some level of risk.
Investment Horizon: UDVD is well-suited for long-term investors. The fund’s potential for capital appreciation, as seen in the growth of a $10,000 investment to about $22,394 over the 10 years to Sep 2026, suggests it’s a viable option for those with a long-term investment outlook.
Income Requirements: Those seeking regular income streams, including retirees or passive income seekers, might consider UDVD due to its quarterly dividend payouts and a reasonable dividend yield of 2.02% (12-month, as of 21 Oct 2026).
Diversification Needs: Investors looking to diversify their portfolio, especially those currently focused on Singapore markets, may find UDVD’s exposure to various U.S. sectors beneficial. The fund’s diversified approach across essential services, goods, and growth sectors aligns with diversification objectives.
Expense Sensitivity: With a total expense ratio of 0.35%, UDVD might initially appear less appealing to cost-conscious investors. It’s crucial to recognise that as your investment value increases, the absolute dollar amount paid in fees will also rise in tandem.
However, for non-U.S. residents seeking to invest in UCITS funds, this expense ratio may be considered acceptable given the specific benefits and regulatory protections UCITS funds offer.
Dividend Growth Focus: Those interested in dividend growth may find UDVD intriguing despite its inconsistency in annual growth rates. The overall upward trend in dividend payouts from 2012 to 2021 indicates a potential for growth.
Market Understanding: Investors with a basic understanding of the U.S. stock market might consider UDVD a suitable addition. The fund’s broad representation of the U.S. market through the S&P High Yield Dividend Aristocrats Index makes it a straightforward option for gaining exposure to U.S. equities.
Tax Considerations
UDVD is domiciled in Ireland. U.S. dividends paid into the fund are generally taxed at 15% at fund level under the U.S.–Ireland tax treaty, rather than the 30% that applies when a Singapore investor holds a U.S.-listed ETF directly. Ireland does not withhold tax on the fund’s distributions to non-Irish investors, and Irish-domiciled funds are generally not treated as U.S. assets for U.S. estate tax.
Conclusion
In my quest to enhance my income-generating portfolio, which currently includes Singapore banks, REITs, and Savings Bonds, I’ve explored the potential of incorporating dividend-paying stocks from the U.S. market. The SPDR® S&P® U.S. Dividend Aristocrats UCITS ETF (UDVD) emerged as a promising candidate to achieve this diversification.
UDVD, tracking the S&P High Yield Dividend Aristocrats Index, offers a comprehensive snapshot of the U.S. stock market, focusing on companies with a robust track record of dividend growth. It encompasses a diverse range of sectors, from technology and healthcare to utilities and consumer goods, reflecting a well-rounded investment approach.
The fund’s performance history reveals its resilience, with impressive returns in its best years and modest downturns in its worst. The dividend yield of 2.02% (12-month, as of 21 Oct 2026) and the practice of quarterly payouts make it an attractive option for those seeking regular income streams. However, the volatility in annual dividend growth rates indicates some risk, appealing to investors with moderate risk tolerance.
Long-term investors may find UDVD particularly appealing, given its potential for capital appreciation. Its diverse sector allocation caters to those looking to broaden their investment horizons beyond the Singapore market.
However, the 0.35% total expense ratio might give cost-conscious investors pause, though it may be acceptable for non-U.S. residents interested in UCITS funds.
In conclusion, UDVD represents a viable option for investors seeking diversification, regular income, and potential growth, particularly for those with a long-term investment perspective and moderate risk tolerance. Its exposure to a wide range of U.S. sectors makes it a compelling choice for expanding an income-generating portfolio beyond the Singapore market.
As always, it’s prudent to consider your personal financial situation, risk tolerance, and investment objectives before making any investment decisions.
