The SPDR ETF follows the S&P High Yield Dividend Aristocrats Index, which holds the highest-yielding stocks in the S&P Composite 1500 that have raised dividends consistently for the last 25 years or more. Components are rebalanced annually in December. SDY has a 12-month yield of 3.26%.
Along with the differences in each of the funds’ indexing methodologies, each fund has varying risk-adjusted returns and sector concentrations.
iShares Dow Jones Select Dividend Index
For more information on dividend paying funds, visit our dividend ETFs category.
Max Chen contributed to this article.