SDY vs SPY
SDY vs SPY
State Street SPDR S&P Dividend ETF 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 | SDY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $22.0B | $789.1B | |
| Dividend Yield | 2.45% | 1.01% | |
| Holdings | 158 | 505 | |
| YTD Return | +14.13% | +13.79% | |
| 1Y Return | +16.87% | +23.66% | |
| 3Y Return (annualized) | +11.24% | +21.40% | |
| 5Y Return (annualized) | +7.88% | +13.37% | |
| Volatility (annualized) | 14.9% | 15.3% | |
| Max Drawdown | -58.6% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 8, 2005 | Jan 22, 1993 |
SDY vs SPY Performance
State Street SPDR S&P Dividend ETF (SDY) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SDY returned +16.87% while SPY returned +23.66%. Year to date, SDY is up 14.13% versus a gain of 13.79% for SPY.
Over three years, SDY compounded at +11.24% per year against +21.40% for SPY; over five years the annualized figures are +7.88% and +13.37% respectively. Across the full 21-year window we track, SPY has the edge at +8.85% annualized vs +6.07%. 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 14.9% 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 -58.6% for SDY 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SDY charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, SDY currently yields 2.45% against 1.01% for SPY.
Holdings Overlap
SDY and SPY share 102 holdings out of 557 unique holdings combined, representing a 13.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SDY | Weight in SPY | Difference |
|---|---|---|---|
| MSFT | 0.37% | 4.43% | 4.06% |
| VZ | 2.10% | 0.27% | 1.83% |
| ABBV | 1.62% | 0.69% | 0.93% |
| O | Pro | Pro | Pro |
| TXN | Pro | Pro | Pro |
| JNJ | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| KVUE | Pro | Pro | Pro |
| KMB | Pro | Pro | Pro |
| XOM | Pro | Pro | Pro |
See all 10 holdings SDY shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, SDY or SPY?
SDY has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, SDY or SPY?
Over the past year SDY returned +16.87% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), SDY annualized +6.07% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SDY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.9% for SDY. Worst drawdown: SDY -58.6% vs SPY -56.5%.
Should I hold both SDY and SPY?
SDY and SPY 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 SDY and SPY?
SDY and SPY share 102 common holdings with a 13.7% weight overlap. Combined, they hold 557 unique securities.
Which pays a higher dividend, SDY or SPY?
SDY yields 2.45% while SPY yields 1.01%, so SDY 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.