SDY - ETF AI Analysis
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SPDR S&P Dividend ETF (SDY)
SDY, the SPDR S&P Dividend ETF, earns a solid overall rating largely because it holds several high-quality, income-focused companies like Verizon, Medtronic, and PepsiCo, which show strong financial performance, healthy cash flows, and supportive earnings outlooks. However, some holdings such as Chevron and Realty Income face bearish technical trends, revenue or valuation pressures, and sector-specific challenges, which slightly weigh on the fund’s rating. A key risk factor is the exposure to companies with mixed momentum or potential overvaluation, which can increase volatility even in a dividend-focused portfolio.
SDY vs. SPDR S&P 500 ETF (SPY)
- AUM
- 21.90B
- Region
- North America
- Expense Ratio
- 0.35%
- Beta
- 0.44
- Issuer
- SPDR
- Inception Date
- Nov 08, 2005
- Dividend Yield
- 2.39%
- Asset Class
- Equity
- Index Tracked
- S&P High Yield Dividend Aristocrats
SDY Summary
SDY is the SPDR S&P Dividend ETF, built to follow the S&P High Yield Dividend Aristocrats Index. It holds U.S. companies that have raised their dividends for at least 20 years in a row, aiming to provide steady income. The fund owns well-known names like PepsiCo and Chevron, along with many other established businesses across industries such as industrials, utilities, and consumer goods. Someone might invest in SDY to get regular dividend payments and broad diversification in one simple investment. A key risk is that stock prices and dividend payments can still go up and down with the overall market.
How much will it cost me?
This ETF has an expense ratio of 0.35%, which means you’ll pay about $3.50 per year for every $1,000 you invest. That cost is a bit higher than the cheapest index ETFs, mainly because SDY focuses on a specialized group of long-term dividend-growing companies rather than tracking a very broad, ultra-low-cost market index.
What would affect this ETF?
SDY could benefit if the U.S. economy stays stable, interest rates eventually ease, and steady demand for defensive sectors like consumer staples, utilities, and health care supports the dividend-paying companies it holds, such as Accenture, PepsiCo, and Verizon. On the other hand, higher-for-longer interest rates, pressure on traditional dividend sectors like financials and real estate, or company-specific problems at major holdings such as Chevron or Target could weigh on dividend growth and the fund’s future returns.
SDY Top 10 Holdings
SDY leans heavily into classic U.S. dividend payers, with consumer defensive, utilities, and industrial names steering the ship. Chevron has been a bright spot, helping to power returns, while Target and Verizon are also rising and adding some welcome momentum. On the flip side, Nike has been losing steam, and PepsiCo’s recent softness has acted as a mild drag. Realty Income has been lagging too, reflecting broader pressure on income-focused real estate. Overall, the fund is U.S.-centric and driven by steady, mature businesses rather than flashy growth stories.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 ACN | Accenture | 3.73% | $816.57M | $143.86B | -3.93% | 79Outperform |
 VZ | Verizon | 2.81% | $615.51M | $179.40B | 9.82% | 81Outperform |
 CVX | Chevron | 2.16% | $471.63M | $452.85B | 48.71% | 71Outperform |
 O | Realty Income | 1.95% | $425.77M | $53.21B | -5.03% | 70Outperform |
 PEP | PepsiCo | 1.83% | $399.49M | $180.74B | -11.65% | 78Outperform |
 MDT | Medtronic | 1.79% | $392.13M | $121.24B | 1.66% | 80Outperform |
 TGT | Target | 1.59% | $347.86M | $67.67B | 53.39% | 70Neutral |
 ADP | Automatic Data Processing | 1.55% | $339.88M | $113.08B | 2.05% | 70Outperform |
 KVUE | Kenvue, Inc. | 1.55% | $338.85M | $37.13B | 33.22% | 73Outperform |
 KMB | Kimberly Clark | 1.52% | $331.98M | $36.05B | -10.16% | 63Neutral |
SDY Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SDY, the sentiment is Positive. The current price of 157.74 is above the 20-day moving average (MA) of 152.90, above the 50-day MA of 152.94, and above the 200-day MA of 149.95, indicating a bullish trend. The MACD of 2.04 indicates Negative momentum. The RSI at 64.85 is Neutral, neither overbought nor oversold. The STOCH value of 73.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDY.
SDY Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| SDY | $157.74 | $170.00(7.77% Upside) | $21.90B | 0.35% | 71Outperform |
 SCHD | $35.09 | $37.51(6.89% Upside) | $118.54B | 0.06% | 74Outperform |
 VYM | $163.37 | $187.37(14.69% Upside) | $82.82B | 0.04% | 72Outperform |
 DVY | $159.75 | $172.51(7.99% Upside) | $23.38B | 0.38% | 70Neutral |
 HDV | $30.21 | $31.87(5.49% Upside) | $15.97B | 0.08% | 70Outperform |
 FDVV | $62.41 | $70.40(12.80% Upside) | $10.52B | 0.15% | 70Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SDY | SPDR S&P Dividend ETF | 157.74 | 24.03 | 17.97% | |
| SCHD | Schwab US Dividend Equity ETF | 35.09 | 9.25 | 35.78% | |
| VYM | Vanguard High Dividend Yield Index ETF | 163.37 | 26.15 | 19.06% | |
| DVY | iShares Select Dividend ETF | 159.75 | 25.37 | 18.88% | |
| HDV | iShares Core High Dividend ETF | 30.21 | 7.19 | 31.21% | |
| FDVV | Fidelity High Dividend ETF | 62.41 | 8.04 | 14.78% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.