Dividend comparison

VYM vs SDY: Which Is Better for Income?

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

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VYM vs SDY: key differences
The short answer, from the latest data on this page.
  • Fees. VYM 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 2.28% for VYM. That is about $14 more a year on $10,000. Both pay quarterly.
  • Performance. Over the last 5 years, VYM returned 67.0% versus 40.4% for SDY, with dividends reinvested. $10,000 would have grown to $16,701 in VYM and $14,037 in SDY.
  • Risk. Their worst declines over the last 5 years were similar: -15.8% for VYM and -15.2% for SDY from peak to trough.
  • Diversification. VYM holds 589 positions and SDY holds 155. The ten largest positions make up 26.2% of VYM and 20.7% of SDY.
  • Overlap. At least 22% of the two portfolios overlap by weight, across 34 shared holdings.
  • Dividend growth. VYM grew its yearly payout 3.1% a year over the last 4 years, versus 1.7% for SDY.
  • Size. VYM is the larger fund with $95.8 billion in assets, against $21.5 billion for SDY.

Bottom line: VYM has the edge on these figures, with lower fees, stronger 5-year returns, faster dividend growth and broader diversification. SDY does not lead on any of the measures compared here.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricVYM
Vanguard High Dividend Yield ETF
SDY
State Street SPDR S&P Dividend ETF
Dividend yield (TTM)2.28%2.42%
Dividend / share (TTM)$3.68$3.78
Payout frequencyQuarterlyQuarterly
Last dividend$0.8869 on Sep 22, 2026$0.9168 on Sep 23, 2026
Ex-dividend dateSep 18, 2026Sep 21, 2026
Dividend growth (CAGR)3.1% over 4 yrs1.7% over 4 yrs
Price$161.15$156.10
Dividend growth streak15 years3 years
Beta0.750.58
Max drawdown (5Y)-15.8%-15.2%
Market cap$95.79B$21.52B
ExchangeAMEXAMEX
Expense ratio0.04%0.35%
Assets under management$95.80B$21.52B
Number of holdings589155
Top 10 concentration26.2%20.7%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

VYM

$19.01/mo

$228 /yr at 2.28% yield

SDY

$20.16/mo

$242 /yr at 2.42% yield

Dividend history
Total dividends paid per share in each calendar year. VYM pays quarterly; SDY pays quarterly.
YearVYMSDY
2025$3.5008$3.6342
2024$3.4945$3.3824
2023$3.4780$3.2981
2022$3.2518$3.1952
2021$3.0961$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 VYM vs SDY actually do

VYM
A broad index fund holding the higher-yielding side of the US dividend-paying market, several hundred companies deep.

It tracks the FTSE High Dividend Yield Index, which ranks US dividend payers by forecast yield, excludes REITs, and works down that ranking until roughly half the market value of the eligible universe is covered. Selection is on yield alone with no quality or growth screen, so the portfolio is wide and diversified but includes some payers a stricter screen would reject. Weighting is by market cap, meaning the biggest dividend-paying companies dominate.

Suits an investor who wants dependable above-market income with maximum breadth and minimum concentration risk. Less suitable if you specifically want dividend growth or a fundamental quality filter, since neither is part of the selection rule.

Core dividend holding

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $16,701 in VYM and $14,037 in SDY.
PeriodVYMSDY
1 month1.19%4.16%
3 months0.62%0.83%
Year to date12.28%12.17%
1 year14.10%11.40%
3 years68.66%47.14%
5 years67.01%40.37%
  • VYM
  • SDY
86132178202120222023202420252026167140

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.
  • VYM
  • SDY
0%5%10%16%21%Financial Services20.9%12.1%Industrials11.6%18.4%Technology17.5%9.1%Consumer Defensive8.2%15.9%Healthcare14.1%8.5%Utilities5.0%12.9%Energy10.2%3.8%Consumer Cyclical6.0%5.2%Basic Materials3.2%7.3%Communication Services3.3%2.9%Other0.0%3.9%
VYM vs SDY holdings overlap
At least 22% overlap by weight, with 34 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 holdingsVYM weightSDY weight
CVXChevron Corp1.61%2.16%
XOMExxonMobil Holdings Corp2.84%1.51%
PGProcter & Gamble Co/The1.44%1.37%
ABBVAbbVie Inc1.96%1.34%
KOCoca-Cola Co/The1.42%1.29%
JNJJohnson & Johnson2.71%0.91%
IBMInternational Business Machines Corp0.88%1.17%
QCOMQUALCOMM Inc0.82%0.84%
VZVerizon Communications Inc0.81%2.92%
TXNTexas Instruments Inc1.08%0.77%
Top 10 holdings
Largest positions by portfolio weight.

VYM589 holdings total

NameWeight
AVGOBroadcom Inc6.93%
JPMJPMorgan Chase & Co3.75%
XOMExxonMobil Holdings Corp2.84%
JNJJohnson & Johnson2.71%
ABBVAbbVie Inc1.96%
CSCOCisco Systems Inc1.80%
CVXChevron Corp1.61%
CATCaterpillar Inc1.56%
MRKMerck & Co Inc1.52%
BACBank of America Corp1.50%

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

VYM has the edge on these figures, with lower fees, stronger 5-year returns, faster dividend growth and broader diversification. SDY does not lead on any of the measures compared here. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is VYM or SDY better for dividend income?
It depends on your goals. VYM currently yields 2.28% 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 VYM and SDY?
Vanguard High Dividend Yield ETF (VYM) 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, VYM or SDY?
VYM has the lower expense ratio. VYM 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, VYM or SDY?
Over the last 5 years, VYM has the higher total return with dividends reinvested: VYM returned 67.0% and SDY returned 40.4%. Past performance does not predict future returns.
Which is riskier, VYM or SDY?
Measured by the worst peak-to-trough decline over the last five years, VYM has been riskier: VYM fell as much as 15.8% and SDY as much as 15.2%. Their betas are 0.75 and 0.58.
How much do VYM and SDY overlap?
At least 22% of the two portfolios overlap by weight, across 34 shared holdings. The largest shared positions are CVX, XOM, PG. Holding both still adds meaningful diversification.
How often do VYM and SDY pay dividends?
Both pay quarterly. The most recent payments were $0.8869 for VYM and $0.9168 for SDY.
How much income does $10,000 in VYM vs SDY generate?
At current TTM yields, $10,000 in VYM would generate roughly $19.01 per month ($228 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 VYM 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 VYM vs SDY with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VYM 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.