SDY vs VOO
State Street SPDR S&P Dividend ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | SDY | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $22.1B | $997.4B | |
| Dividend Yield | 2.41% | 1.08% | |
| Holdings | 158 | 509 | |
| YTD Return | +14.96% | +13.20% | |
| 1Y Return | +15.64% | +21.62% | |
| 3Y Return (annualized) | +12.60% | +22.16% | |
| 5Y Return (annualized) | +8.09% | +13.42% | |
| Volatility (annualized) | 14.9% | 14.1% | |
| Max Drawdown | -58.6% | -34.3% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 8, 2005 | Sep 7, 2010 |
SDY vs VOO Performance
State Street SPDR S&P Dividend ETF (SDY) is a ETF from State Street Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SDY returned +15.64% while VOO returned +21.62%. Year to date, SDY is up 14.96% versus a gain of 13.20% for VOO.
Over three years, SDY compounded at +12.60% per year against +22.16% for VOO; over five years the annualized figures are +8.09% and +13.42% respectively. Across the full 16-year window we track, VOO has the edge at +13.51% annualized vs +6.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SDY has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 14.1% for VOO. 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 -34.3% for VOO. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SDY charges 0.35% per year while VOO charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, SDY currently yields 2.41% against 1.08% for VOO.
Holdings Overlap
SDY and VOO share 102 holdings out of 559 unique holdings combined, representing a 14.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SDY or VOO?
SDY has an expense ratio of 0.35% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, SDY or VOO?
Over the past year SDY returned +15.64% vs +21.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), SDY annualized +6.09% vs +13.51% for VOO. Past performance does not guarantee future results.
Which is riskier, SDY or VOO?
SDY has been the more volatile fund at 14.9% annualized versus 14.1% for VOO. Worst drawdown: SDY -58.6% vs VOO -34.3%.
Should I hold both SDY and VOO?
SDY and VOO have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SDY and VOO?
SDY and VOO share 102 common holdings with a 14.1% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, SDY or VOO?
SDY yields 2.41% while VOO yields 1.08%, so SDY currently pays the higher dividend yield.
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