SDY vs VTI
State Street SPDR S&P Dividend ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | SDY | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $22.1B | $666.9B | |
| Dividend Yield | 2.41% | 1.07% | |
| Holdings | 158 | 3,543 | |
| YTD Return | +14.31% | +12.65% | |
| 1Y Return | +14.73% | +21.39% | |
| 3Y Return (annualized) | +12.38% | +21.54% | |
| 5Y Return (annualized) | +7.80% | +12.11% | |
| Volatility (annualized) | 14.9% | 15.3% | |
| Max Drawdown | -58.6% | -56.6% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 8, 2005 | May 24, 2001 |
SDY vs VTI Performance
State Street SPDR S&P Dividend ETF (SDY) is a ETF from State Street Investment Management and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year SDY returned +14.73% while VTI returned +21.39%. Year to date, SDY is up 14.31% versus a gain of 12.65% for VTI.
Over three years, SDY compounded at +12.38% per year against +21.54% for VTI; over five years the annualized figures are +7.80% and +12.11% respectively. Across the full 21-year window we track, VTI has the edge at +8.07% annualized vs +6.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI 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 -56.6% for VTI. 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 VTI 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 1.07% for VTI.
Holdings Overlap
SDY and VTI share 131 holdings out of 2812 unique holdings combined, representing a 12.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SDY or VTI?
SDY has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, SDY or VTI?
Over the past year SDY returned +14.73% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (21 years), SDY annualized +6.06% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, SDY or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.9% for SDY. Worst drawdown: SDY -58.6% vs VTI -56.6%.
Should I hold both SDY and VTI?
SDY and VTI 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 VTI?
SDY and VTI share 131 common holdings with a 12.6% weight overlap. Combined, they hold 2812 unique securities.
Which pays a higher dividend, SDY or VTI?
SDY yields 2.41% while VTI yields 1.07%, so SDY currently pays the higher dividend yield.
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