SPY vs UDIV
State Street SPDR S&P 500 ETF Trust vs Franklin US Core Dividend Tilt Index ETF
Quick Verdict
UDIV has a lower expense ratio. UDIV delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | UDIV | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.06% | |
| AUM | $821.1B | $150M | |
| Dividend Yield | 1.01% | 1.49% | |
| Holdings | 505 | 286 | |
| YTD Return | +12.22% | +16.02% | |
| 1Y Return | +20.83% | +24.84% | |
| 3Y Return (annualized) | +21.70% | +24.00% | |
| 5Y Return (annualized) | +12.98% | +14.04% | |
| Volatility (annualized) | 15.3% | 14.4% | |
| Max Drawdown | -56.5% | -35.5% | |
| Fund Family | State Street Investment Management | Franklin Templeton Investments (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jun 1, 2016 |
SPY vs UDIV Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Franklin US Core Dividend Tilt Index ETF (UDIV) is a ETF from Franklin Templeton Investments (US). Over the past year SPY returned +20.83% while UDIV returned +24.84%. Year to date, SPY is up 12.22% versus a gain of 16.02% for UDIV.
Over three years, SPY compounded at +21.70% per year against +24.00% for UDIV; over five years the annualized figures are +12.98% and +14.04% respectively. Across the full 10-year window we track, UDIV has the edge at +10.19% annualized vs +8.79%. 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 14.4% for UDIV. 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 SPY and -35.5% for UDIV. 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SPY charges 0.09% per year while UDIV charges 0.06%. On a $10,000 position that is $9 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.49% for UDIV.
Holdings Overlap
SPY and UDIV share 255 holdings out of 530 unique holdings combined, representing a 74.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SPY or UDIV?
SPY has an expense ratio of 0.09% while UDIV charges 0.06%. UDIV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SPY or UDIV?
Over the past year SPY returned +20.83% vs +24.84% for UDIV, so UDIV leads on 1-year performance. Over the longest common window we track (10 years), SPY annualized +8.79% vs +10.19% for UDIV. Past performance does not guarantee future results.
Which is riskier, SPY or UDIV?
SPY has been the more volatile fund at 15.3% annualized versus 14.4% for UDIV. Worst drawdown: SPY -56.5% vs UDIV -35.5%.
Should I hold both SPY and UDIV?
SPY and UDIV have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SPY and UDIV?
SPY and UDIV share 255 common holdings with a 74.6% weight overlap. Combined, they hold 530 unique securities.
Which pays a higher dividend, SPY or UDIV?
SPY yields 1.01% while UDIV yields 1.49%, so UDIV currently pays the higher dividend yield.
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