SDY alternatives and similar ETFs

SDY alternatives at a glance#

Each fund below can stand in for SDY, closest first. “Same kind” funds hold the same kind of stocks through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How SDY and its alternatives did over the same dates#

Each row measures the alternative and SDY on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each SDY alternative, compared#

SPYD: State Street SPDR Portfolio S&P 500 High Dividend ETF#

SPYD also holds US companies that pay high or steady dividends. It tracks the S&P 500 High Dividend Index, while SDY tracks the S&P High Yield Dividend Aristocrats Index.

It charges 0.07% a year, about $7 on $10,000, against $35 for SDY. It held 78 stocks, against 155 for SDY.

From October 2015 to October 2026, SPYD returned about 8.9% a year and SDY returned about 10.0% a year. Over about the last five years they moved together on most days (correlation 0.94).

Read the SPYD fund page for its returns by year and worst drop.

DVY: iShares Select Dividend ETF#

DVY also holds US companies that pay high or steady dividends. It tracks the Dow Jones U.S. Select Dividend Index, while SDY tracks the S&P High Yield Dividend Aristocrats Index.

It charges 0.38% a year, about $38 on $10,000, against $35 for SDY. It held 98 stocks, against 155 for SDY.

From November 2005 to October 2026, DVY returned about 8.5% a year and SDY returned about 8.9% a year. Over about the last five years they moved together on most days (correlation 0.94).

Read the DVY fund page for its returns by year and worst drop.

SCHD: Schwab U.S. Dividend Equity ETF#

SCHD also holds US companies that pay high or steady dividends. It tracks the Dow Jones U.S. Dividend 100 Index, while SDY tracks the S&P High Yield Dividend Aristocrats Index.

It charges 0.06% a year, about $6 on $10,000, against $35 for SDY. It held 98 stocks, against 155 for SDY.

From October 2011 to October 2026, SCHD returned about 13.5% a year and SDY returned about 11.3% a year. Over about the last five years they moved together on most days (correlation 0.93).

Read the SCHD fund page for its returns by year and worst drop.

SPHD: Invesco S&P 500 High Dividend Low Volatility ETF#

SPHD also holds US companies that pay high or steady dividends. It tracks the S&P 500 Low Volatility High Dividend Index, while SDY tracks the S&P High Yield Dividend Aristocrats Index.

It charges 0.3% a year, about $30 on $10,000, against $35 for SDY.

From October 2012 to October 2026, SPHD returned about 9.4% a year and SDY returned about 11.0% a year. Over about the last five years they moved together on most days (correlation 0.92).

Read the SPHD fund page for its returns by year and worst drop.

VYM: Vanguard High Dividend Yield ETF#

VYM also holds US companies that pay high or steady dividends. It tracks the FTSE High Dividend Yield Index, while SDY tracks the S&P High Yield Dividend Aristocrats Index.

It charges 0.04% a year, about $4 on $10,000, against $35 for SDY. It held 593 stocks, against 155 for SDY.

From November 2006 to October 2026, VYM returned about 9.3% a year and SDY returned about 8.5% a year. Over about the last five years they moved together on most days (correlation 0.90).

Read the VYM fund page for its returns by year and worst drop.

HDV: iShares Core High Dividend ETF#

HDV also holds US companies that pay high or steady dividends. It tracks the Morningstar Dividend Yield Focus Index, while SDY tracks the S&P High Yield Dividend Aristocrats Index.

It charges 0.08% a year, about $8 on $10,000, against $35 for SDY. It held 74 stocks, against 155 for SDY.

From March 2011 to October 2026, HDV returned about 11.0% a year and SDY returned about 10.6% a year. Over about the last five years they moved together on most days (correlation 0.87).

Read the HDV fund page for its returns by year and worst drop.

DGRO: iShares Core Dividend Growth ETF#

DGRO is a looser match. It holds US companies that have raised their dividends for many years in a row, while SDY holds US companies that pay high or steady dividends.

It charges 0.08% a year, about $8 on $10,000, against $35 for SDY. It held 391 stocks, against 155 for SDY.

From June 2014 to October 2026, DGRO returned about 12.4% a year and SDY returned about 9.6% a year. Over about the last five years they moved together on most days (correlation 0.92).

Read the DGRO fund page for its returns by year and worst drop.

VIG: Vanguard Dividend Appreciation ETF#

VIG is a looser match. It holds US companies that have raised their dividends for many years in a row, while SDY holds US companies that pay high or steady dividends.

It charges 0.04% a year, about $4 on $10,000, against $35 for SDY. It held 333 stocks, against 155 for SDY.

From May 2006 to October 2026, VIG returned about 10.2% a year and SDY returned about 8.8% a year. Over about the last five years they moved together on most days (correlation 0.87).

Read the VIG fund page for its returns by year and worst drop.

SDY versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to SDY from each other company on this page:

• iShares (BlackRock): DVY, iShares Select Dividend ETF (same kind of fund, 0.38% a year)
• Schwab: SCHD, Schwab U.S. Dividend Equity ETF (same kind of fund, 0.06% a year)
• Invesco: SPHD, Invesco S&P 500 High Dividend Low Volatility ETF (same kind of fund, 0.3% a year)
• Vanguard: VYM, Vanguard High Dividend Yield ETF (same kind of fund, 0.04% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between SDY and its alternatives#

• What it tracks. A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, SDY costs about $35 a year. VYM costs about $4.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping SDY to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as SPYD, DVY or SCHD, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test SDY and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add SDY and SPYD, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as SDY. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like SDY over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with SDY only on days both traded. Read what a backtest simulates for more on these measures.