DIVI vs SPY

DIVI vs SPY
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Quick Verdict

DIVI has a lower expense ratio. DIVI delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: DIVIHigher Returns: DIVIMore Diversified: SPY

Side-by-Side Comparison

MetricDIVISPYWinner
Expense Ratio0.09%0.09%
AUM$2.8B$821.1B
Dividend Yield3.55%1.01%
Holdings421505
YTD Return+14.48%+12.22%
1Y Return+23.92%+20.83%
3Y Return (annualized)+20.55%+21.70%
5Y Return (annualized)+13.93%+12.98%
Volatility (annualized)13.5%15.3%
Max Drawdown-27.8%-56.5%
Fund FamilyFranklin Templeton Investments (US)State Street Investment Management
CategoryEquityEquity
InceptionJun 1, 2016Jan 22, 1993

DIVI vs SPY Performance

Franklin International Core Dividend Tilt Index ETF (DIVI) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DIVI returned +23.92% while SPY returned +20.83%. Year to date, DIVI is up 14.48% versus a gain of 12.22% for SPY.

Over three years, DIVI compounded at +20.55% per year against +21.70% for SPY; over five years the annualized figures are +13.93% and +12.98% respectively. Across the full 10-year window we track, SPY has the edge at +8.79% annualized vs +7.82%. 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 13.5% for DIVI. 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 -27.8% for DIVI 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DIVI charges 0.09% per year while SPY charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, DIVI currently yields 3.55% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

DIVI and SPY share 2 holdings out of 911 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in DIVIWeight in SPYDifference
IRM0.18%0.06%0.12%
BG0.20%0.02%0.18%

Frequently Asked Questions

Which is cheaper, DIVI or SPY?

DIVI has an expense ratio of 0.09% while SPY charges 0.09%. DIVI is the cheaper option. On a $10,000 investment, that is $0 per year of difference.

Which performed better, DIVI or SPY?

Over the past year DIVI returned +23.92% vs +20.83% for SPY, so DIVI leads on 1-year performance. Over the longest common window we track (10 years), DIVI annualized +7.82% vs +8.79% for SPY. Past performance does not guarantee future results.

Which is riskier, DIVI or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 13.5% for DIVI. Worst drawdown: DIVI -27.8% vs SPY -56.5%.

Should I hold both DIVI and SPY?

DIVI and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DIVI and SPY?

DIVI and SPY share 2 common holdings with a 0.1% weight overlap. Combined, they hold 911 unique securities.

Which pays a higher dividend, DIVI or SPY?

DIVI yields 3.55% while SPY yields 1.01%, so DIVI currently pays the higher dividend yield.

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