DIVY vs SPY
Sound Equity Dividend Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. DIVY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | DIVY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.09% | |
| AUM | $29M | $789.1B | |
| Dividend Yield | 3.11% | 1.01% | |
| Holdings | 37 | 505 | |
| YTD Return | +18.77% | +13.39% | |
| 1Y Return | +27.48% | +22.52% | |
| 3Y Return (annualized) | +10.15% | +21.36% | |
| 5Y Return (annualized) | +8.18% | +13.19% | |
| Volatility (annualized) | 15.0% | 15.3% | |
| Max Drawdown | -18.3% | -56.5% | |
| Fund Family | Sound Income Strategies | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2020 | Jan 22, 1993 |
DIVY vs SPY Performance
Sound Equity Dividend Income ETF (DIVY) is a ETF from Sound Income Strategies and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DIVY returned +27.48% while SPY returned +22.52%. Year to date, DIVY is up 18.77% versus a gain of 13.39% for SPY.
Over three years, DIVY compounded at +10.15% per year against +21.36% for SPY; over five years the annualized figures are +8.18% and +13.19% respectively. Across the full 6-year window we track, DIVY has the edge at +12.28% annualized vs +8.84%. 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 15.0% for DIVY. 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 -18.3% for DIVY 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DIVY charges 0.45% per year while SPY charges 0.09%. On a $10,000 position that is $45 vs $9 annually, a gap of $36 per year that compounds over a long holding period. On income, DIVY currently yields 3.11% against 1.01% for SPY.
Holdings Overlap
DIVY and SPY share 22 holdings out of 517 unique holdings combined, representing a 3.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DIVY or SPY?
DIVY has an expense ratio of 0.45% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, DIVY or SPY?
Over the past year DIVY returned +27.48% vs +22.52% for SPY, so DIVY leads on 1-year performance. Over the longest common window we track (6 years), DIVY annualized +12.28% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, DIVY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 15.0% for DIVY. Worst drawdown: DIVY -18.3% vs SPY -56.5%.
Should I hold both DIVY and SPY?
DIVY and SPY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DIVY and SPY?
DIVY and SPY share 22 common holdings with a 3.6% weight overlap. Combined, they hold 517 unique securities.
Which pays a higher dividend, DIVY or SPY?
DIVY yields 3.11% while SPY yields 1.01%, so DIVY currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.