- SPHD will reconstitute on February 1, 2021, but with the index reference date being December 31, 2020, we now have a good idea of what changes the ETF awaits.
- Real Estate will make up just 5% of the ETF next month, down from about 22% pre-pandemic and by far the largest one-year swing in the ETF's 8-year history.
- Still, there are some reasons to get excited, as dividend consistency among constituents remains high and allocations to Consumer Staples stocks will increase to their highest level in seven years.
- While I continue to dislike SPHD's methodology, its sector allocation is moving in the right direction, which is why I've upgraded my rating from bearish to neutral.
For further details see:
SPHD Sneak Peak: Projecting February's Constituents