DDIV vs. SPY
Compare and contrast key facts about First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) and SPDR S&P 500 ETF (SPY).
DDIV and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. DDIV is a passively managed fund by First Trust that tracks the performance of the Dorsey Wright Momentum Plus Dividend Yield Index. It was launched on Mar 10, 2014. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both DDIV and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: DDIV or SPY.
Key characteristics
| DDIV | SPY | |
|---|---|---|
| YTD Return | 6.96% | 5.60% |
| 1Y Return | 21.46% | 23.55% |
| 3Y Return (Ann) | 4.73% | 7.83% |
| 5Y Return (Ann) | 9.11% | 13.05% |
| 10Y Return (Ann) | 8.13% | 12.30% |
| Sharpe Ratio | 1.44 | 1.91 |
| Daily Std Dev | 13.39% | 11.63% |
| Max Drawdown | -47.55% | -55.19% |
| Current Drawdown | -4.95% | -4.36% |
Correlation
The correlation between DDIV and SPY is 0.73, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
DDIV vs. SPY - Performance Comparison
In the year-to-date period, DDIV achieves a 6.96% return, which is significantly higher than SPY's 5.60% return. Over the past 10 years, DDIV has underperformed SPY with an annualized return of 8.13%, while SPY has yielded a comparatively higher 12.30% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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DDIV vs. SPY - Expense Ratio Comparison
DDIV has a 0.60% expense ratio, which is higher than SPY's 0.09% expense ratio.
Risk-Adjusted Performance
DDIV vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) and SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
DDIV vs. SPY - Dividend Comparison
DDIV's dividend yield for the trailing twelve months is around 2.67%, more than SPY's 1.34% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DDIV First Trust Dorsey Wright Momentum & Dividend ETF | 2.67% | 3.18% | 3.60% | 2.43% | 2.63% | 2.93% | 3.27% | 2.35% | 2.45% | 2.61% | 2.15% | 0.00% |
SPY SPDR S&P 500 ETF | 1.34% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
DDIV vs. SPY - Drawdown Comparison
The maximum DDIV drawdown since its inception was -47.55%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for DDIV and SPY. For additional features, visit the drawdowns tool.
Volatility
DDIV vs. SPY - Volatility Comparison
The current volatility for First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) is 3.63%, while SPDR S&P 500 ETF (SPY) has a volatility of 3.88%. This indicates that DDIV experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.