DVY vs SPY
iShares Select Dividend ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. DVY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | DVY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.09% | |
| AUM | $23.8B | $789.1B | |
| Dividend Yield | 3.37% | 1.01% | |
| Holdings | 105 | 505 | |
| YTD Return | +15.77% | +13.39% | |
| 1Y Return | +22.98% | +22.52% | |
| 3Y Return (annualized) | +16.38% | +21.36% | |
| 5Y Return (annualized) | +10.06% | +13.19% | |
| Volatility (annualized) | 14.8% | 15.3% | |
| Max Drawdown | -65.2% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 3, 2003 | Jan 22, 1993 |
DVY vs SPY Performance
iShares Select Dividend ETF (DVY) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DVY returned +22.98% while SPY returned +22.52%. Year to date, DVY is up 15.77% versus a gain of 13.39% for SPY.
Over three years, DVY compounded at +16.38% per year against +21.36% for SPY; over five years the annualized figures are +10.06% and +13.19% respectively. Across the full 23-year window we track, SPY has the edge at +8.84% annualized vs +6.14%. 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 14.8% for DVY. 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 -65.2% for DVY 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DVY 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, DVY currently yields 3.37% against 1.01% for SPY.
Holdings Overlap
DVY and SPY share 67 holdings out of 536 unique holdings combined, representing a 8.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DVY or SPY?
DVY 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, DVY or SPY?
Over the past year DVY returned +22.98% vs +22.52% for SPY, so DVY leads on 1-year performance. Over the longest common window we track (23 years), DVY annualized +6.14% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, DVY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.8% for DVY. Worst drawdown: DVY -65.2% vs SPY -56.5%.
Should I hold both DVY and SPY?
DVY and SPY have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DVY and SPY?
DVY and SPY share 67 common holdings with a 8.3% weight overlap. Combined, they hold 536 unique securities.
Which pays a higher dividend, DVY or SPY?
DVY yields 3.37% while SPY yields 1.01%, so DVY currently pays the higher dividend yield.
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