IVV vs SDY
iShares Core S&P 500 ETF vs State Street SPDR S&P Dividend ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | SDY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $865.2B | $22.0B | |
| Dividend Yield | 1.09% | 2.45% | |
| Holdings | 508 | 158 | |
| YTD Return | +13.72% | +14.08% | |
| 1Y Return | +21.64% | +16.01% | |
| 3Y Return (annualized) | +21.55% | +11.38% | |
| 5Y Return (annualized) | +13.27% | +7.54% | |
| Volatility (annualized) | 15.1% | 14.9% | |
| Max Drawdown | -56.5% | -58.6% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Nov 8, 2005 |
IVV vs SDY Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P Dividend ETF (SDY) is a ETF from State Street Investment Management. Over the past year IVV returned +21.64% while SDY returned +16.01%. Year to date, IVV is up 13.72% versus a gain of 14.08% for SDY.
Over three years, IVV compounded at +21.55% per year against +11.38% for SDY; over five years the annualized figures are +13.27% and +7.54% respectively. Across the full 21-year window we track, IVV has the edge at +7.04% annualized vs +6.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 14.9% for SDY. 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 -56.5% for IVV and -58.6% for SDY. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while SDY charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 2.45% for SDY.
Holdings Overlap
IVV and SDY share 103 holdings out of 558 unique holdings combined, representing a 14.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or SDY?
IVV has an expense ratio of 0.03% while SDY charges 0.35%. IVV is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IVV or SDY?
Over the past year IVV returned +21.64% vs +16.01% for SDY, so IVV leads on 1-year performance. Over the longest common window we track (21 years), IVV annualized +7.04% vs +6.06% for SDY. Past performance does not guarantee future results.
Which is riskier, IVV or SDY?
IVV has been the more volatile fund at 15.1% annualized versus 14.9% for SDY. Worst drawdown: IVV -56.5% vs SDY -58.6%.
Should I hold both IVV and SDY?
IVV and SDY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and SDY?
IVV and SDY share 103 common holdings with a 14.2% weight overlap. Combined, they hold 558 unique securities.
Which pays a higher dividend, IVV or SDY?
IVV yields 1.09% while SDY yields 2.45%, so SDY currently pays the higher dividend yield.
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