ETF Comparison
VIG vs SDY: Which Is the Better Pick in 2026?
A head-to-head comparison of Vanguard Dividend Appreciation Index Fund ETF Shares and SPDR S&P Dividend ETF covering yield, cost, risk, and income potential.
Data updated April 5, 2026
Side-by-side snapshot
| VIG | SDY | |
|---|---|---|
| Full name | Vanguard Dividend Appreciation Index Fund ETF Shares | SPDR S&P Dividend ETF |
| Issuer | Vanguard | State Street |
| Price | $215.68 | $145.84 |
| Distribution yield | 1.56% | 2.33% |
| Expense ratio | 0.04% | 0.35% |
| AUM | $123.8B | $22.1B |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | Basket (Vanguard Dividend Appreciation ETF holdings) | S&P High Yield Dividend Aristocrats Index |
| Objective | Seeks to track the performance of the S&P U.S. Dividend Growers Index, which consists of common stocks of companies that have a record of at least 10 years of increasing regular cash dividend payments. | Dividend Income |
| Asset class | Equity | Equity |
| Inception date | 04/21/2006 | — |
| Beta | 0.81 | 0.68 |
| Last dividend | $0.83 | $0.87 |
| Ex-dividend date | 03/27/2026 | 03/23/2026 |
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
VIG (Vanguard Dividend Appreciation Index Fund ETF Shares) and SDY (SPDR S&P Dividend ETF) are both popular quarterly-pay seeks to track the performance of the s&p u.s. dividend growers index, which consists of common stocks of companies that have a record of at least 10 years of increasing regular cash dividend payments. ETFs, but they take different approaches.
SDY offers the higher yield at 2.33% vs 1.56% for VIG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
VIG is cheaper with an expense ratio of 0.04% compared to 0.35%.
They track different benchmarks: VIG is linked to Basket (Vanguard Dividend Appreciation ETF holdings) while SDY tracks S&P High Yield Dividend Aristocrats Index, which means their performance drivers differ.
VIG is the larger fund by assets ($123.8B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, VIG would generate roughly $13.00/month while SDY would produce $19.42/month at current distribution rates. Both pay quarterly distributions.
Cost & efficiency
Over 10 years on $10,000, VIG would cost approximately $40 in fees vs $350 for SDY (simplified, not compounded). The $310.00 difference may be offset by yield or performance.
Strategy & risk
VIG tracks Basket (Vanguard Dividend Appreciation ETF holdings) with a seeks to track the performance of the s&p u.s. dividend growers index, which consists of common stocks of companies that have a record of at least 10 years of increasing regular cash dividend payments. approach, while SDY tracks S&P High Yield Dividend Aristocrats Index using a dividend income strategy. Beta is 0.81 for VIG and 0.68 for SDY, indicating SDY is less volatile relative to the market.
Fund details
VIG is managed by Vanguard (launched 04/21/2006) with $123.8B in assets. SDY is managed by State Street (launched —) with $22.1B in assets.
Income calculator
See how much monthly income a hypothetical investment would generate in each ETF at current yields.
Frequently asked questions
Is VIG or SDY better for dividend income?
It depends on your goals. SDY currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between VIG and SDY?
VIG (Vanguard Dividend Appreciation Index Fund ETF Shares) tracks Basket (Vanguard Dividend Appreciation ETF holdings) with a seeks to track the performance of the s&p u.s. dividend growers index, which consists of common stocks of companies that have a record of at least 10 years of increasing regular cash dividend payments. strategy, while SDY (SPDR S&P Dividend ETF) tracks S&P High Yield Dividend Aristocrats Index with a dividend income approach. They are issued by Vanguard and State Street respectively.
Can I hold both VIG and SDY?
Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.
Which has lower fees, VIG or SDY?
VIG has an expense ratio of 0.04% while SDY charges 0.35%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in VIG vs SDY generate?
At current yields, $10,000 in VIG would generate roughly $13.00 per month ($156.00 annually). The same in SDY would produce about $19.42 per month ($233.00 annually).
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