In a SPYD vs. SPYG comparison, are you wondering which ETF would do wonders to your investment portfolio? Learn more about their key features, composition, and performance, and assess which fund is better.
The SPDR (Standard and Poor Depository Receipt) is a group of portfolio-building components intended to offer a wide and diverse exposure to core asset categories. This article sheds light on two Exchange-Traded Funds (ETFs) of SPDR: the SPYD, a high dividend ETF, and SPYG, a growth ETF.
SPYD: SPDR Portfolio S&P 500 High Dividend ETF
SPYD is the SPDR Portfolio S&P 500 High Dividend ETF. The fund was launched in 2015 that seeks to track and replicate the performance of the S&P 500 High Dividend Index.
At least 80% of the fund’s assets are invested in the S&P 500 index securities. The S&P 500 index is designed to assess the performance of the 80 companies within the index which yield the highest dividend.
The S&P 500 index focuses on large-cap US-based equity, composed of common stock and real estate investment trusts.
SPYD is one of the lowest-cost ETFs of the core SPDR portfolio at an expense ratio of 0.07%. This fund aims to provide high dividend revenue while presenting you with the opportunity to have your assets appreciate.
Currently, SPYD has around $6.515 billion in total net asset value. The fund has an average expense ratio of 0.07%. Most importantly, it has a dividend yield of 3.97%.
SPYG: SPDR Portfolio S&P 500 Growth ETF
The SPYG is the SPDR Portfolio S&P 500 Growth ETF. Unlike SPYD (a high dividend ETF), SPYG seeks to track and replicate the performance of the total returns for the S&P 500 Growth Index.
The S&P 500 Growth Index is designed to track the performance of the large-cap US-based equities’ growth segment. Launched in 2000, SPYG offers investors exposure to companies with the strongest growth patterns. The company stocks to buy are chosen according to a viable growth pattern based on sales volume, their momentum, and the ratio of their earnings change to price.
SPYG has around $12.65 billion worth of total net assets. The fund has an expense ratio of 0.04% and a dividend yield of around 0.74%.
SPYD Vs. SPYG: Key Differences
The main difference between SPYD and SPYG is the nature of the two funds. While one is a high dividend ETF, the other is a growth ETF. Some other key differences are discussed below.
- SPYD seeks to replicate the performance of the S&P 500 High Dividend Index, while SPYG replicates the performance of the total returns for the S&P 500 Growth Index.
- SPYD has an expense ratio of 0.07%, while SPYG has an expense ratio of 0.04%.
- SPYD has around $6.515 billion in net assets, while SPYG has $12.65 billion worth of net assets.
- SPYD has a dividend yield of 3.57%, while SPYG has a dividend yield of 0.74%.
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SPYD Vs. SPYG: Composition Differences
When we look at the composition of the two funds, we can see significant differences in their holdings.
The difference in the portfolio of the two funds can be attributed to their varying orientations, as one is a high dividend ETF while the other is a growth ETF. Where the one focuses on maximizing your dividend yield, the other focuses on maximizing your capital growth.
Let’s look at the composition of SPYD. The top ten holdings of the ETF are given below. These holdings constitute around 15.38% of the total assets of SPYD.
Here are the top ten holdings of SPYD:
| S. No | Company | Symbol | Percentage in the portfolio |
| 1 | Invesco Ltd | IVZ | 1.62% |
| 2 | Public Storage | PSA | 1.59% |
| 3 | Regions Financial Corp | RF | 1.57% |
| 4 | Comerica Inc. | CMA | 1.57% |
| 5 | International Paper Co | IP | 1.55% |
| 6 | Fifth Third Bancorp | FITB | 1.53% |
| 7 | Leggett & Platt Inc. | LEG | 1.50% |
| 8 | Viacom CBS Inc. Class B | VIAC | 1.49% |
| 9 | Hanesbrands Inc. | HBI | 1.48% |
| 10 | Broadcom Inc. | AVGO | 1.48% |
As suggested earlier, the top ten holdings of SPYD only comprise 15.38% of its total assets. It implies that the fund is not concentrated in one company or even the top-tier companies and is quite diverse, with numerous companies’ stocks in its portfolio.
Here are the sectors SPYD is invested in:
| S. No | Sector | Weightings in % |
| 3 | Financial services | 26.46% |
| 4 | Real estate | 19.65% |
| 9 | Energy | 13.79% |
| 7 | Utilities | 12.84% |
| 8 | Communication services | 6.40% |
| 11 | Technology | 5.45% |
| 5 | Consumer defensive | 5.21% |
| 2 | Consumer Cyclical | 5.08% |
| 6 | Health care | 4.67% |
| 1 | Basic materials | 2.46% |
As you can see, the financial services sector constitutes the biggest percentage of the SPYD portfolio. The real estate and energy sector are in second and third place, with the utility sector not far behind.
Now let’s look at the composition of SPYG, particularly the top 10 holdings, which constitute 43.95% of its total assets portfolio.
Here are the top ten holdings for SPYG:
| S. No | Company | Symbol | Percentage in the portfolio |
| 1 | Apple Inc. | AAPL | 10.60% |
| 2 | Microsoft Corp | MSFT | 9.28% |
| 3 | Amazon.com Inc. | AMZN | 7.83% |
| 4 | Facebook Inc. A | FB | 3.83% |
| 5 | Alphabet Inc. A | GOOGL | 2.94% |
| 6 | Alphabet Inc. Class C | GOOG | 2.88% |
| 7 | NVIDIA Corp | NVDA | 1.87% |
| 8 | Visa Inc. Class A | V | 1.86% |
| 9 | MasterCard Inc. A | MA | 1.54% |
| 10 | PayPal Holdings Inc. | PYPL | 1.32% |
There is a stark difference in the top ten holdings of SPYD and SPYG. As you can see, companies are mostly from the technology sector in the SPYG portfolio. 43.95% of the portfolio is concentrated within the top ten holdings. That implies that SPYG is a concentrated fund with a lower level of diversification compared to SPYD.
Here are the sectors SPYG invests in:
| S. No | Sector | Weightings in % |
| 11 | Technology | 37.44% |
| 2 | Consumer Cyclical | 15.86% |
| 8 | Communication services | 15.26% |
| 6 | Health care | 11.57% |
| 3 | Financial services | 6.92% |
| 10 | Industrials | 5.87% |
| 5 | Consumer defensive | 3.80% |
| 1 | Basic materials | 1.63% |
| 4 | Real estate | 1.12% |
| 7 | Utilities | 0.46% |
| 9 | Energy | 0.07% |
SPYG has most companies from the technology sector as its top holdings. An astounding 37.44% of the fund’s portfolio is based on the technology sector. The consumer cyclical and communication services are in second and third, respectively. Most of these companies feature a higher growth pattern.
SPYD Vs. SPYG: Performance Differences
While investors’ investment preferences play a vital role; eventually, it is the performance that is important too. Let’s look at the performance of the two funds to get a clearer picture of where they stand.
Here is the performance review of SPYD:
| S.NO | Period | Percentage Return |
| 1 | Year-to-date | 5.68% |
| 2 | 1-month return | 2.70% |
| 3 | 3-month return | 3.45% |
| 4 | 1-year return | 16.62% |
| 5 | 3-year return | 9.48% |
| 6 | 5-year return | 10.80% |
| 7 | 10-year return | 0.00% |
Here is the performance review of SPYG:
| S.NO | Period | Percentage Return |
| 1 | Year-to-date | -8.54% |
| 2 | 1-month return | 6.81% |
| 3 | 3-month return | -5.45% |
| 4 | 1-year return | 14.12% |
| 5 | 3-year return | 21.77% |
| 6 | 5-year return | 19.13% |
| 7 | 10-year return | 16.66% |
As you can see from the return on investment (ROI) percentages, SPYD has performed better than SPYG when looking at the one-year and monthly returns. However, if we look at the performance for the three-year and five-year mark, SPYG has done better than SPYD.
If we look at the overall performance review of the two funds since the inception of SPYD in 2015, SPYG outperforms SPYD. SPYG displays a total return of around 171.19%, higher than the 98.58% of SPYD.
However, these values are not an indication of the future and do not imply that the trend will continue in the future.
SPYD Vs. SPYG: Fees
Both SPYD and SPYG are low-cost funds. SPYD has an expense ratio of 0.07%, and SPYG has an expense ratio of 0.04%. It implies that an investment of $10,000 in SPYD would cost you $7 annually, and an investment of $10,000 in SPYG would cost you $4 annually.
While the values do not seem significant, the difference between the two funds grows more if you consider bigger investments over a longer time.
Frequently Asked Questions – SPYD Vs. SPYG
Is SPYG A Good ETF?
SPYG is a high-performing, low-cost ETF offering exposure to large-cap US-based equities’ growth segment. It is a viable option for investment in the long term.
Is SPYD Better Than Vanguard?
Generally, Vanguard ETFs are regarded to be the favorites for long-term investors with their extremely low expense ratios, higher performance, and investment returns. However, it is rather inhibiting to consider a generic scenario where we compare the overall portfolio of the Vanguard portfolio.
For instance, if we compare the Vanguard VTI with SPYD, it has a better ranking and a bigger fund with a lower expense ratio, making it a better option than SPYD.
Are SPYD And SPDR The Same?
SPYD is the SPDR Portfolio S&P 500 High Dividend ETF, which is part of the core portfolio SPDR. SPDR is a group of exchange-traded funds intended to offer a wide and diverse exposure to core asset categories.
Conclusion – SPYD Vs. SPYG
It appears that SPYG outdoes SPYD in terms of performance, net assets, and expense ratio. However, it is also more volatile and has a lower dividend yield.
On the one hand, SPYD offers lower market volatility and a higher dividend yield. But on the other hand, SPYD offers higher returns or dividend yields.
If you want less volatility and a higher return on your investment with a high-dividend-focused portfolio, SPYD seems to be a more sensible investment decision. However, if you want more promising returns and are not concerned about volatility, then SPYG is a better option. The bottom line is that your investment decision rests on your investment strategy, objectives, and preferences.
So, regardless of your choice in this SPYD vs. SPYG faceoff, it always pays to learn more about your investment options. Invest well!
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