Dividend comparison

VIG vs SDY: Which Is Better for Income?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Dividend Appreciation ETF and State Street SPDR S&P Dividend ETF, side by side. Updated October 21, 2026.

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VIG vs SDY: key differences
The short answer, from the latest data on this page.
  • Fees. VIG is cheaper at 0.04% a year versus 0.35% for SDY. On $10,000 that is $31 a year less in fees.
  • Income. SDY pays more income, yielding 2.42% over the last twelve months versus 1.50% for VIG. That is about $92 more a year on $10,000. Both pay quarterly.
  • Performance. Over the last 5 years, VIG returned 61.4% versus 40.4% for SDY, with dividends reinvested. $10,000 would have grown to $16,136 in VIG and $14,037 in SDY.
  • Risk. VIG has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -20.4%, against -15.2% for SDY.
  • Diversification. VIG holds 338 positions and SDY holds 155. The ten largest positions make up 34.9% of VIG and 20.7% of SDY.
  • Overlap. At least 23% of the two portfolios overlap by weight, across 44 shared holdings.
  • Dividend growth. VIG grew its yearly payout 7.5% a year over the last 4 years, versus 1.7% for SDY.
  • Size. VIG is the larger fund with $127.7 billion in assets, against $21.5 billion for SDY.

Bottom line: VIG fits better if you care most about lower fees, stronger 5-year returns, faster dividend growth and broader diversification. SDY fits better if you care most about more income today and smaller drawdowns.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricVIG
Vanguard Dividend Appreciation ETF
SDY
State Street SPDR S&P Dividend ETF
Dividend yield (TTM)1.50%2.42%
Dividend / share (TTM)$3.65$3.78
Payout frequencyQuarterlyQuarterly
Last dividend$0.9295 on Sep 30, 2026$0.9168 on Sep 23, 2026
Ex-dividend dateSep 28, 2026Sep 21, 2026
Dividend growth (CAGR)7.5% over 4 yrs1.7% over 4 yrs
Price$243.07$156.10
Dividend growth streak12 years3 years
Beta0.820.58
Max drawdown (5Y)-20.4%-15.2%
Market cap$127.69B$21.52B
ExchangeAMEXAMEX
Expense ratio0.04%0.35%
Assets under management$127.70B$21.52B
Number of holdings338155
Top 10 concentration34.9%20.7%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

VIG

$12.50/mo

$150 /yr at 1.50% yield

SDY

$20.16/mo

$242 /yr at 2.42% yield

Dividend history
Total dividends paid per share in each calendar year. VIG pays quarterly; SDY pays quarterly.
YearVIGSDY
2025$3.5580$3.6342
2024$3.3791$3.3824
2023$3.2081$3.2981
2022$2.9725$3.1952
2021$2.6601$3.3913
Strategy: Dividend equity
Rules-based equity funds that screen for companies paying sustainable or rising dividends, aiming at income plus long-term share-price participation. The screen is what defines the fund: yield-ranked indexes deliver more cash now, dividend-growth indexes deliberately exclude the highest payers in favor of durability. Both approaches produce a sector mix that looks nothing like the broad market, typically heavier in financials, healthcare, staples and industrials.

Expect stretches of underperformance versus the broad market whenever leadership comes from the high-growth, low-yield companies these screens exclude.

What VIG vs SDY actually do

VIG
A fund holding US companies with at least ten consecutive years of dividend increases, deliberately excluding the highest yielders.

It tracks the S&P U.S. Dividend Growers Index, which requires a decade of unbroken annual increases and then removes the top 25% of eligible names by yield. Screening out the highest payers is intentional: an unusually high yield often signals a stretched payout or a falling share price, and the index is built for durability rather than for current income. The result is a lower starting yield than most dividend funds and a portfolio that leans toward large, stable, profitable companies.

Suits a long-horizon investor who cares more about the dividend rising every year than about the size of the first payment. Not appropriate if you need meaningful cash flow from the position today.

Dividend growth, quality tilt

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $16,136 in VIG and $14,037 in SDY.
PeriodVIGSDY
1 month2.56%4.16%
3 months2.30%0.83%
Year to date10.60%12.17%
1 year11.88%11.40%
3 years64.31%47.14%
5 years61.36%40.37%
  • VIG
  • SDY
80124169202120222023202420252026161140

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • VIG
  • SDY
0%7%14%21%27%Technology27.4%9.1%Financial Services20.7%12.1%Industrials10.8%18.4%Healthcare18.7%8.5%Consumer Defensive9.1%15.9%Utilities2.7%12.9%Basic Materials3.2%7.3%Consumer Cyclical3.9%5.2%Energy3.6%3.8%Real Estate3.9%Other0.5%2.9%
VIG vs SDY holdings overlap
At least 23% overlap by weight, with 44 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Largest shared holdingsVIG weightSDY weight
XOMExxonMobil Holdings Corp2.96%1.51%
PGProcter & Gamble Co/The1.50%1.37%
ABBVAbbVie Inc2.05%1.34%
KOCoca-Cola Co/The1.48%1.29%
IBMInternational Business Machines Corp0.92%1.17%
JNJJohnson & Johnson2.83%0.91%
QCOMQUALCOMM Inc0.87%0.84%
TXNTexas Instruments Inc1.13%0.77%
PEPPepsiCo Inc0.77%1.83%
ABTAbbott Laboratories0.76%1.25%
Top 10 holdings
Largest positions by portfolio weight.

VIG338 holdings total

NameWeight
MSFTMicrosoft Corp4.90%
AAPLApple Inc4.89%
AVGOBroadcom Inc4.30%
LLYEli Lilly & Co4.10%
JPMJPMorgan Chase & Co3.89%
XOMExxonMobil Holdings Corp2.96%
JNJJohnson & Johnson2.83%
VVisa Inc2.53%
7DZ.DEExxonMobil Holdings Corp2.46%
WMTWalmart Inc2.05%

SDY155 holdings total

NameWeight
ACNACCENTURE PLC CL A3.71%
VZVERIZON COMMUNICATIONS INC2.92%
CVXCHEVRON CORP2.16%
OREALTY INCOME CORP1.95%
MDTMEDTRONIC PLC1.84%
PEPPEPSICO INC1.83%
TGTTARGET CORP1.69%
ADPAUTOMATIC DATA PROCESSING1.56%
KVUEKENVUE INC1.53%
NKENIKE INC CL B1.52%

Quick verdict

VIG fits better if you care most about lower fees, stronger 5-year returns, faster dividend growth and broader diversification. SDY fits better if you care most about more income today and smaller drawdowns. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is VIG or SDY better for dividend income?
It depends on your goals. VIG currently yields 1.50% Trailing Twelve Months (TTM) while SDY yields 2.42%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VIG and SDY?
Vanguard Dividend Appreciation ETF (VIG) is an ETF listed on AMEX. State Street SPDR S&P Dividend ETF (SDY) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VIG or SDY?
VIG has the lower expense ratio. VIG charges 0.04% a year and SDY charges 0.35%, a difference of $31 a year on a $10,000 investment.
Which has performed better, VIG or SDY?
Over the last 5 years, VIG has the higher total return with dividends reinvested: VIG returned 61.4% and SDY returned 40.4%. Past performance does not predict future returns.
Which is riskier, VIG or SDY?
Measured by the worst peak-to-trough decline over the last five years, VIG has been riskier: VIG fell as much as 20.4% and SDY as much as 15.2%. Their betas are 0.82 and 0.58.
How much do VIG and SDY overlap?
At least 23% of the two portfolios overlap by weight, across 44 shared holdings. The largest shared positions are XOM, PG, ABBV. Holding both still adds meaningful diversification.
How often do VIG and SDY pay dividends?
Both pay quarterly. The most recent payments were $0.9295 for VIG and $0.9168 for SDY.
How much income does $10,000 in VIG vs SDY generate?
At current TTM yields, $10,000 in VIG would generate roughly $12.50 per month ($150 annually). The same amount in SDY would produce about $20.16 per month ($242 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VIG and SDY?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VIG vs SDY with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VIG and SDY fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.