Is SPDR S&P Dividend ETF (SDY) a Strong ETF Right Now?

Core Insights - The SPDR S&P Dividend ETF (SDY) offers broad exposure to the Style Box - Large Cap Value category, having debuted on November 8, 2005 [1] - SDY is managed by State Street Global Advisors and has accumulated over $20.49 billion in assets, making it one of the largest ETFs in its category [5] - The ETF aims to match the performance of the S&P High Yield Dividend Aristocrats Index, which includes constituents that have consistently increased dividends for at least 20 consecutive years [6] Fund Characteristics - SDY has an annual operating expense of 0.35%, which is competitive within its peer group, and a 12-month trailing dividend yield of 2.55% [7] - The fund's largest sector allocation is to Industrials at 20.9%, followed by Consumer Staples and Utilities [8] - Top holdings include Microchip Technology Inc (2.49% of total assets), Verizon Communications Inc, and Realty Income Corp, with the top 10 holdings accounting for 17.82% of total assets [9] Performance Metrics - As of July 28, 2025, SDY has gained approximately 7.2% year-to-date and 8.32% over the past year, with a trading range between $121.58 and $144.00 in the last 52 weeks [10] - The ETF has a beta of 0.78 and a standard deviation of 14.28% over the trailing three-year period, indicating a medium risk profile [10] Alternatives - Other ETFs in the same space include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), with SCHD having $71.33 billion in assets and an expense ratio of 0.06%, while VTV has $141.62 billion and an expense ratio of 0.04% [12] - Investors seeking lower-cost options may consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value [12]