tiprankstipranks
Advertisement

SDY - ETF AI Analysis

Compare

Top Page

SDY

SPDR S&P Dividend ETF (SDY)

Rating:71Outperform
Price Target:
SDY’s rating reflects a generally solid, income-focused portfolio led by strong holdings like Verizon and PepsiCo, which offer healthy cash flows, solid financial performance, and supportive earnings commentary that bolster the fund’s quality. However, weaker technical trends and cash flow or debt concerns in utilities such as Consolidated Edison and Southern Co slightly weigh on the overall assessment, and the presence of multiple utility and energy names means investors should be aware of sector concentration risk.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.
Generally Strong Top Holdings
Most of the largest positions, such as Realty Income, Target, Chevron, Exxon Mobil, and Archer Daniels Midland, have shown strong recent performance, supporting the ETF’s overall returns.
Large Asset Base
The ETF manages a sizable pool of assets, which can help with trading liquidity and make it easier for investors to buy and sell shares.
Negative Factors
High U.S. Concentration
Almost all of the fund’s assets are invested in U.S. companies, offering little geographic diversification if the U.S. market weakens.
Mixed Performance Among Top Holdings
Some key holdings like Verizon have shown weak recent performance, which can drag on the fund’s overall results.
Moderate Expense Ratio
The fund’s expense ratio is not especially low for a passive ETF, meaning fees take a noticeable, ongoing bite out of returns.

SDY vs. SPDR S&P 500 ETF (SPY)

SDY Summary

SDY is the SPDR S&P Dividend ETF, which follows 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 Verizon, PepsiCo, Chevron, and Exxon Mobil, spread across sectors such as industrials, consumer goods, and utilities. Someone might invest in SDY to seek regular dividend payments and broad diversification among established companies. 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?The SPDR S&P Dividend ETF (SDY) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average for passively managed ETFs because it focuses on a specific niche of high dividend-yielding companies with strong track records of increasing dividends.
What would affect this ETF?The SPDR S&P Dividend ETF (SDY) could benefit from stable economic growth and low interest rates, which often support dividend-paying companies and sectors like Industrials and Consumer Defensive. However, rising interest rates or economic downturns could negatively impact dividend sustainability and sectors like Utilities and Real Estate, which are sensitive to borrowing costs. Regulatory changes or shifts in energy policies might also affect top holdings like Chevron and Exxon Mobil.

SDY Top 10 Holdings

SDY leans heavily into classic U.S. dividend payers, with telecom, energy, utilities, and consumer defensives setting the tone. Verizon has been a quiet engine for the fund, rising steadily and adding some growth to the income story, while Chevron and Exxon Mobil have been clear bright spots as energy strength powers returns. On the defensive side, Target’s rebound has helped, but consumer staples like PepsiCo and Kimberly-Clark have been more mixed, with Kimberly-Clark in particular losing steam. Utilities such as Consolidated Edison keep income steady, even if their stock momentum is softer.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Verizon3.49%$730.47M$201.52B11.32%
81
Outperform
Realty Income2.45%$514.28M$58.93B16.71%
70
Outperform
Target2.28%$476.91M$56.17B33.78%
70
Neutral
Chevron2.18%$457.16M$379.84B41.03%
71
Outperform
PepsiCo1.76%$368.26M$215.23B9.26%
78
Outperform
Exxon Mobil1.68%$352.46M$646.02B55.15%
74
Outperform
WEC Energy Group1.63%$340.64M$37.90B12.58%
67
Neutral
Consolidated Edison1.57%$329.67M$41.54B6.17%
62
Neutral
Kenvue, Inc.1.56%$326.36M$33.41B-20.30%
73
Outperform
Southern Co1.55%$325.78M$109.24B9.79%
68
Neutral

SDY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
149.56
Negative
100DMA
144.72
Positive
200DMA
140.68
Positive
Market Momentum
MACD
-0.59
Negative
RSI
56.84
Neutral
STOCH
81.32
Negative
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 undefined is equal to the 20-day moving average (MA) of 146.04, equal to the 50-day MA of 149.56, and equal to the 200-day MA of 140.68, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 81.32 is Negative, 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
$20.61B0.35%
71
Outperform
$86.27B0.06%
73
Outperform
$74.77B0.04%
71
Outperform
$22.61B0.38%
69
Neutral
$13.62B0.08%
71
Outperform
$8.62B0.15%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SDY
SPDR S&P Dividend ETF
148.67
22.19
17.54%
SCHD
Schwab US Dividend Equity ETF
VYM
Vanguard High Dividend Yield Index ETF
DVY
iShares Select Dividend ETF
HDV
iShares Core High Dividend ETF
FDVV
Fidelity High Dividend ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis 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.Date of analysis: ―
Table of Contents
Advertisement