SPDR
S&P GLOBAL DIVIDEND ETF
Management's
Discussion of Fund Performance (Unaudited)
The
SPDR S&P Global Dividend ETF (the “Fund”) seeks to provide investment
results that, before fees and expenses, correspond generally to the total return
of an index that tracks stocks of global companies that offer high dividend
yields. The Fund’s benchmark is the S&P Global Dividend Aristocrats Index
(the “Index”).
For
the 12-month period ended September 30, 2021 (the “Reporting Period”), the total
return for the Fund was 30.37%, and the Index was 30.31%. The Fund and Index
returns reflect the reinvestment of dividends and other income. The Fund’s
performance reflects the expenses of managing the Fund, including brokerage and
advisory expenses. The Index is unmanaged and Index returns do not reflect fees
and expenses of any kind, which would have a negative impact on returns. Fees,
dividend tax withholding differences, cash, and small security misweights
contributed to the difference between the Fund’s performance and that of the
Index.
The
performance throughout Reporting Period was mostly positive, with eight of the
twelve months posting positive returns. The best performing quarter was the
first quarter of the Reporting Period, Q4 of 2020. This was largely driven by
November 2020, when the Fund returned +14.85%. Despite the pandemic taking a
turn for the worse over the quarter and equities performing poorly in October,
the U.S. election results and positive news on COVID-19 vaccines helped markets
to recover. Approvals to use vaccines manufactured by Pfizer-BioNTech, Moderna
and Oxford-AstraZeneca led to the largest momentum changes in the history of
equity markets. Hard-hit sectors, such as energy, traditional retail, hotels,
airlines and financials, rallied, while pandemic winners, such as online retail,
health care and home improvement, lagged.
The
first quarter of 2021 started off by overcoming concerns regarding potential
virus-driven restrictions as a successful roll out of vaccinations and the
promise of a fiscal and monetary stimuli lifted investor sentiments. However,
the subsequent slow pace of vaccine distribution and concerns around a
longer-than-anticipated timeline for economic recovery led to global markets
stumbling for a short period. The sell-offs were short lived as stocks regained
some upside momentum on news of strong manufacturing data, firmer oil prices and
hopes for additional fiscal stimuli. With majority of adults receiving at least
one dose of the vaccine and the number of people being hospitalized with
COVID-19 being much lower than at the start of the year, the continued rally was
a signal of investors looking ahead to a sustainable reopening of economies. The
quarter ended up +9.71%.
The
next quarter, Q2 of 2020, was a bit more volatile, but still posted a positive
return of +4.50%. Economic data was strong over this quarter as mobility
restrictions were lifted by most countries and economic activity picked up
during the period. Vaccine rollouts in the U.S., UK and Europe continued to
proceed at speed. However, a rebound in economic activity led to concerns around
a spike in inflation.
Equity
markets experienced a poor performance during the last quarter of the Reporting
Period; the Fund posted a return of –2.22%. The underperformance was primarily a
result of the Chinese equity markets dragging the overall emerging market
equities down and the developed market equities having a flat quarter after a
moderate decline in September erased the quarter’s prior gains. Globally the
vaccine rollout made decent progress and many developed economies had eased
restrictions. Global reopening continued during the quarter, with a number of
developed markets further lifting restrictions. Economic data remained strong;
however, much of the developed markets appeared to be at or just past the peak
rate of growth. There were also concerns regarding a peak in the rate of
economic growth, supply disruptions and rising inflation.
Throughout
the Reporting Period, the performance of the sectors were all positive, ranging
from +6.98% to +61.43%. The top performing sectors were Energy, Information
Technology and Financials, with returns all over 50%. The bottom performing
sectors were Health Care, Consumer Staples and Materials.
The
Fund did not invest in derivatives during the Reporting Period.
On
an individual security level, the top positive contributors to the Fund’s
performance during the Reporting Period were Bendigo & Adelaide Bank Ltd.,
Lenovo Group Limited, and Exxon Mobil Corporation. The top negative contributors
to the Fund’s performance during the Reporting Period were B&G Foods, Inc.,
Freenet AG, and Hengan International Group Co., Ltd.
The
views expressed above reflect those of the Fund’s portfolio manager only through
the Reporting Period, and do not necessarily represent the views of the Adviser
as a whole. Any such views are subject to change at any time based upon market
or other conditions and the Adviser disclaims any responsibility to update such
views. These views may not be relied on as investment advice and, because
investment decisions for a fund are based on numerous factors, may not be relied
on as an indication of trading intent on behalf of any fund.
