What Is the SDY ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
SDY, the SPDR S&P Dividend ETF, is a US dividend ETF that invests in Dividend Aristocrats with long streaks of consecutive dividend increases, weighting holdings by dividend yield. Differences in expense ratios and inclusion criteria versus similar dividend ETFs such as SCHD, VIG, and VYM are the key factors when choosing among them.
SubscribeWhat Is the SPDR S&P Dividend ETF?
It is a US dividend ETF that tracks the S&P High Yield Dividend Aristocrats Index. It holds only stocks that have raised their dividends without interruption over a long period, and it weights positions by dividend yield, capturing both dividend growth and high-yield characteristics.
It suits income-oriented investors who value stable long-term dividend income and a track record of dividend growth.
It is a passive (index-tracking) ETF managed by State Street.
How Does the SPDR S&P Dividend ETF Invest?
| Item | Details |
|---|---|
| Tracked index | S&P High Yield Dividend Aristocrats Index |
| Management style | Passive (index tracking) |
| Rebalancing frequency | Once per quarter |
| Dividend frequency | Quarterly dividends |
| Expense ratio | 0.35% |
| Issuer | State Street |
The fund includes only stocks that have raised their dividends without interruption over a long period, then weights holdings by dividend yield. As a result, it places greater weight on the relatively higher-yielding names among companies with steady dividend increases, pursuing dividend growth and high yield at the same time.
- Includes only stocks with long streaks of consecutive dividend increases
- Dividend yield weighting method
SPDR S&P Dividend ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $22.8B, and the expense ratio is 0.35% per year.
Compared with similar dividend ETFs such as SCHD and VIG, it differs in inclusion criteria and weighting method, which changes the makeup of its holdings and the nature of its returns.
SPDR S&P Dividend ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBecause it is centered on dividend growth stocks, it tends to show lower volatility than the broader market, and its short-term performance varies with the interest rate environment and investor appetite for dividend stocks. In phases led by growth stocks, it can also trail with a relatively subdued performance.
Backed by demand for stable income, its fund flows tend to be steady, and when expectations of rate cuts grow, investor interest in high-dividend and dividend growth ETFs tends to rise. During volatile markets, its defensive character can also come to the fore.
SPDR S&P Dividend ETF Pros and Cons
Its strength is the stability of a portfolio built around stocks with long histories of dividend increases, while its weaknesses are relative underperformance when growth stocks are strong and sector concentration.
💪 Key Strengths
⚠️ Points to Watch
SPDR S&P Dividend ETF Alternatives and Related Products
The VIG, SCHD, and VYM shown in the table are comparison targets in the same dividend category. Their inclusion criteria and weighting methods differ, so they split into dividend growth focused (VIG) and high-yield focused (VYM) profiles. In addition, NOBL, which holds stocks with long streaks of consecutive dividend increases at equal weight, and DGRO, which focuses on dividend growth, can also be considered as direct comparisons.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SCHD | Schwab US Dividend Equity ETF | $35.42 | -2.2% | $122.9B | 0.06% | 2.97% | +33.3% |
 VIG | Vanguard Dividend Appreciation FTF | $244.26 | -3.3% | $118.1B | 0.04% | 1.49% | +12.9% |
 VYM | Vanguard High Dividend Yield Indx ETF | $159.80 | -3.3% | $84.1B | 0.04% | 2.3% | +14.2% |
 DFAC | U.S. Core Equity 2 Portfolio-ETF Class Shares | $43.71 | -4.0% | $50.2B | 0.18% | 0.9% | +12.5% |
 RDVY | First Trust Rising Dividend Achievers ETF | $77.97 | -3.9% | $26.1B | 0.47% | 0.87% | +15.4% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| VZ | Verizon Communications Inc | 0.06% | $46.12 | -0.1% | $191.1B | 11.8 | 6.12% |
| O | Realty Income Corp | 0.05% | $59.50 | +0.5% | $56.6B | 41.1 | 5.48% |
| CVX | Chevron Corp | 0.02% | $212.93 | -1.9% | $415.4B | 15.6 | 3.35% |
| TGT | Target Corp | 0.02% | $157.95 | -3.2% | $71.8B | 16.4 | 2.69% |
| XOM | ExxonMobil Holdings Corp | 0.02% | $165.30 | -2.4% | $674.3B | 17.0 | 2.51% |
| PEP | PepsiCo Inc | 0.02% | $142.71 | +0.2% | $194.5B | 17.9 | 4.1% |
| KMB | Kimberly-Clark Corp | 0.02% | $110.46 | +1.5% | $67.8B | 18.8 | 4.66% |
| KVUE | Kenvue Inc | 0.02% | $19.31 | +0.0% | $37.1B | 22.0 | 4.34% |
SPDR S&P Dividend ETF Investor Checkpoints
These are the points to review before investing in SDY. It can serve as a core dividend income asset, but you should check its costs, sector concentration, interest rate sensitivity, and dividend character before buying.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the cumulative effect over a long holding period | Annual fee applies |
| 📊 Sector concentration | Monitor the trend in defensive sector weightings | Large weighting in certain sectors |
| 📈 Dividend character | Check the balance between dividend growth and high yield | Blended style maintained |
| 💱 Exchange rate | Effect on returns converted to Korean won | No currency hedge |
Relative underperformance when growth stocks are strong and sector concentration are the main variables for short-term performance. Because overall appetite for dividend stocks can shift with the interest rate environment, you should also consider the market phase.
It is a suitable choice for investors who value long-term dividend income and a track record of dividend growth. If you place more weight on dividend growth, compare it with VIG and DGRO, and if you want a relatively higher yield, compare it with VYM and SCHD before choosing.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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