CGDG vs SPY

CGDG vs SPY

Which is better, CGDG or SPY?

SPY has been ahead.

SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. CGDG is less concentrated, with 25.6% of the fund in its ten largest positions against 38.0%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: CGDG

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricCGDGSPY
Expense Ratio0.47%0.09%Best
AUM$5.7B$804.7B
Dividend Yield2.22%0.98%
Holdings110505
YTD Return+7.44%+11.52%Best
1Y Return+13.05%+17.48%Best
3Y Return (annualized)+17.89%+20.62%Best
5Y Return (annualized)-+12.73%
Volatility (annualized)8.7%Best12.5%
Max Drawdown-10.5%Best-18.8%
$10,000 over 3 years$16,384$18,473Best
Top 10 Weight25.6%Best38.0%
Fund FamilyCapital Group (US)State Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionSep 26, 2023Jan 22, 1993

Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 28, 2023 to Sep 10, 2026 (3 years).

CGDG vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.

CGDG vs SPY Performance

Capital Group Dividend Growers ETF (CGDG) is an ETF from Capital Group (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year CGDG returned +13.05% while SPY returned +17.48%. Year to date, CGDG is up 7.44% versus a gain of 11.52% for SPY.

Over three years, CGDG compounded at +17.89% per year against +20.62% for SPY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 12.5% compared with 8.7% for CGDG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -10.5% for CGDG and -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

CGDG charges 0.47% per year while SPY charges 0.09%. On a $10,000 position that is $47 vs $9 annually, a gap of $38 per year that compounds over a long holding period. On income, CGDG currently yields 2.22% against 0.98% for SPY.

Holdings Overlap

CGDG already in SPY46.6%
SPY already in CGDG20.8%

46.6% of CGDG's money is in holdings SPY also owns. 20.8% of SPY's money is in holdings CGDG also owns.

The two portfolios partly overlap.

41 positions in common, counted across the 103 positions we hold weights for in CGDG and 504 in SPY, against full books of 110 and 505.

What only one of them owns

Our book lists 453 positions for SPY that do not appear in our book for CGDG (78.7% of the fund), and 6 for CGDG that do not appear in SPY (4.6%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in CGDGWeight in SPYDifference
AVGOBroadcom Inc4.52%2.97%1.55%
MSFTMicrosoft Corp 4.100 Feb 06 370.93%5.50%4.57%
PMPhilip Morris International Inc.3.86%0.44%3.42%
JPMJpmorgan Chase & Co.1.17%1.44%0.27%
ABBVAbbvie Inc.1.86%0.65%1.21%
WELLWelltower Inc2.16%0.25%1.91%
RTXRaytheon Technologies Corp1.70%0.44%1.26%
XOMExxon Mobil Corp.0.95%0.96%0.01%
JNJJohnson & Johnson0.80%0.92%0.12%
MRKMerck & Co. Inc.1.23%0.47%0.76%

46.6% of CGDG is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

CGDGSPY

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Frequently Asked Questions

Which is cheaper, CGDG or SPY?

CGDG has an expense ratio of 0.47% while SPY charges 0.09%. SPY is the cheaper option, by $38 a year on a $10,000 investment.

Which performed better, CGDG or SPY?

Over the past year CGDG returned +13.05% vs +17.48% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, CGDG or SPY?

SPY has been the more volatile fund at 12.5% annualized versus 8.7% for CGDG. Worst drawdown: CGDG -10.5% vs SPY -18.8%.

Should I hold both CGDG and SPY?

CGDG and SPY have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between CGDG and SPY?

46.6% of CGDG's money is in holdings SPY also owns. 20.8% of SPY's is in holdings CGDG also owns. They hold 41 positions in common, counted across the 103 positions we hold weights for in CGDG and 504 in SPY.

Which pays a higher dividend, CGDG or SPY?

CGDG yields 2.22% while SPY yields 0.98%, so CGDG currently pays the higher dividend yield.

Is SPY better than CGDG?

SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. CGDG is less concentrated, with 25.6% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.