DON vs SPY
WisdomTree US MidCap Dividend Fund 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 503 holdings.
Side-by-Side Comparison
| Metric | DON | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.09% | |
| AUM | $4.0B | $789.1B | |
| Dividend Yield | 2.26% | 1.01% | |
| Holdings | 293 | 505 | |
| YTD Return | +13.30% | +13.39% | |
| 1Y Return | +18.28% | +22.52% | |
| 3Y Return (annualized) | +13.08% | +21.36% | |
| 5Y Return (annualized) | +8.97% | +13.19% | |
| Volatility (annualized) | 18.1% | 15.3% | |
| Max Drawdown | -64.4% | -56.5% | |
| Fund Family | WisdomTree Investments | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Jan 22, 1993 |
DON vs SPY Performance
WisdomTree US MidCap Dividend Fund (DON) is a ETF from WisdomTree Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DON returned +18.28% while SPY returned +22.52%. Year to date, DON is up 13.30% versus a gain of 13.39% for SPY.
Over three years, DON compounded at +13.08% per year against +21.36% for SPY; over five years the annualized figures are +8.97% and +13.19% respectively. Across the full 20-year window we track, SPY has the edge at +8.84% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DON has been the more volatile fund, with annualized monthly volatility of 18.1% compared with 15.3% for SPY. 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 -64.4% for DON 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DON charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, DON currently yields 2.26% against 1.01% for SPY.
Holdings Overlap
DON and SPY share 48 holdings out of 741 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DON or SPY?
DON has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, DON or SPY?
Over the past year DON returned +18.28% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), DON annualized +7.10% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, DON or SPY?
DON has been the more volatile fund at 18.1% annualized versus 15.3% for SPY. Worst drawdown: DON -64.4% vs SPY -56.5%.
Should I hold both DON and SPY?
DON and SPY have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DON and SPY?
DON and SPY share 48 common holdings with a 1.1% weight overlap. Combined, they hold 741 unique securities.
Which pays a higher dividend, DON or SPY?
DON yields 2.26% while SPY yields 1.01%, so DON currently pays the higher dividend yield.
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