CGDG vs SPY
Capital Group Dividend Growers ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | CGDG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.09% | |
| AUM | $5.7B | $821.1B | |
| Dividend Yield | 2.24% | 1.01% | |
| Holdings | 102 | 505 | |
| YTD Return | +9.04% | +12.22% | |
| 1Y Return | +16.12% | +20.83% | |
| 3Y Return (annualized) | +18.89% | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 8.7% | 15.3% | |
| Max Drawdown | -10.5% | -56.5% | |
| Fund Family | Capital Group (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 26, 2023 | Jan 22, 1993 |
CGDG vs SPY Performance
Capital Group Dividend Growers ETF (CGDG) is a ETF from Capital Group (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CGDG returned +16.12% while SPY returned +20.83%. Year to date, CGDG is up 9.04% versus a gain of 12.22% for SPY.
Over three years, CGDG compounded at +18.89% per year against +21.70% for SPY. Across the full 3-year window we track, CGDG has the edge at +18.89% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
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 2.24% against 1.01% for SPY.
Holdings Overlap
CGDG and SPY share 41 holdings out of 566 unique holdings combined, representing a 15.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $38 per year of difference.
Which performed better, CGDG or SPY?
Over the past year CGDG returned +16.12% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), CGDG annualized +18.89% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, CGDG or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.7% for CGDG. Worst drawdown: CGDG -10.5% vs SPY -56.5%.
Should I hold both CGDG and SPY?
CGDG and SPY have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGDG and SPY?
CGDG and SPY share 41 common holdings with a 15.9% weight overlap. Combined, they hold 566 unique securities.
Which pays a higher dividend, CGDG or SPY?
CGDG yields 2.24% while SPY yields 1.01%, so CGDG currently pays the higher dividend yield.
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