SDY vs. USMV

Last updated Jun 4, 2026

SDY (SPDR S&P Dividend ETF) and USMV (iShares MSCI USA Min Vol Factor ETF) are both exchange-traded funds - SDY is a Mid Cap Value Equities fund tracking the S&P High Yield Dividend Aristocrats Index, while USMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Index. Both are passively managed. Over the past 10 years, SDY returned 9.29%/yr vs 9.93%/yr for USMV. Their correlation of 0.84 suggests significant overlap in exposure. SDY charges 0.35%/yr vs 0.15%/yr for USMV.

Performance

SDY vs. USMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Dividend ETF (SDY) and iShares MSCI USA Min Vol Factor ETF (USMV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SDY achieves a 7.49% return, which is significantly higher than USMV's 2.65% return. Over the past 10 years, SDY has underperformed USMV with an annualized return of 9.29%, while USMV has yielded a comparatively higher 9.93% annualized return.

SDY

• 1D: -0.15%
• 1M: 0.81%
• YTD: 7.49%
• 6M: 7.45%
• 1Y: 12.80%
• 3Y*: 9.83%
• 5Y*: 5.97%
• 10Y*: 9.29%

USMV

• 1D: -0.69%
• 1M: 2.01%
• YTD: 2.65%
• 6M: 2.61%
• 1Y: 4.37%
• 3Y*: 11.79%
• 5Y*: 7.45%
• 10Y*: 9.93%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SDY vs. USMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDY SPDR S&P Dividend ETF	7.49%	8.18%	8.45%	2.61%	-0.54%	25.32%	1.71%	23.29%	-2.74%	15.82%
USMV iShares MSCI USA Min Vol Factor ETF	2.65%	7.65%	15.74%	10.33%	-9.43%	20.85%	5.64%	27.69%	1.33%	18.91%

Correlation

The correlation between SDY and USMV is 0.72, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Oct 21, 2011	0.84

The correlation between SDY and USMV shifts across timeframes, from 0.72 (1 year) to 0.84 (all time), reflecting how their relationship changes across market environments.

SDY vs. USMV - Sectors Allocation Comparison

Sectors	SDY	USMV
Industrials	17.5%	5.7%
Consumer Defensive	17.1%	10.0%
Utilities	14.8%	7.5%
Financial Services	11.5%	12.4%
Technology	8.7%	30.8%
Basic Materials	6.4%	2.2%
Healthcare	6.2%	12.5%
Consumer Cyclical	5.2%	5.7%
Real Estate	4.6%	2.2%
Energy	4.6%	3.6%
Communication Services	3.5%	5.9%

Return for Risk

SDY vs. USMV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SDY

SDY Risk / Return Rank: 33
SDY Sharpe Ratio Rank: 33
SDY Sortino Ratio Rank: 36
SDY Omega Ratio Rank: 31
SDY Calmar Ratio Rank: 33
SDY Martin Ratio Rank: 31

USMV

USMV Risk / Return Rank: 17
USMV Sharpe Ratio Rank: 16
USMV Sortino Ratio Rank: 16
USMV Omega Ratio Rank: 15
USMV Calmar Ratio Rank: 17
USMV Martin Ratio Rank: 19

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SDY vs. USMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Dividend ETF (SDY) and iShares MSCI USA Min Vol Factor ETF (USMV). 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.

	SDY	USMV	Difference
Sharpe ratio: Return per unit of total volatility	1.25	0.52	+0.73
Sortino ratio: Return per unit of downside risk	1.92	0.79	+1.13
Omega ratio: Gain probability vs. loss probability	1.22	1.09	+0.12
Calmar ratio: Return relative to maximum drawdown	1.68	0.68	+1.00
Martin ratio: Return relative to average drawdown	4.60	2.27	+2.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SDY vs. USMV - Sharpe Ratio Comparison

The current SDY Sharpe Ratio is 1.25, which is higher than the USMV Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of SDY and USMV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SDY	USMV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.25	0.52	+0.73
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	0.61	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.69	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.47	0.87	-0.40

Drawdowns

SDY vs. USMV - Drawdown Comparison

The maximum SDY drawdown since its inception was -54.75%, which is greater than USMV's maximum drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for SDY and USMV.

Drawdown Indicators

	SDY	USMV	Difference
Max Drawdown Largest peak-to-trough decline	-54.75%	-33.10%	-21.65%
Max Drawdown (1Y) Largest decline over 1 year	-7.67%	-6.46%	-1.21%
Max Drawdown (3Y) Largest decline over 3 years	-14.39%	-9.36%	-5.03%
Max Drawdown (5Y) Largest decline over 5 years	-15.21%	-17.93%	+2.72%
Max Drawdown (10Y) Largest decline over 10 years	-36.70%	-33.10%	-3.60%
Current Drawdown Current decline from peak	-4.07%	-1.18%	-2.89%
Average Drawdown Average peak-to-trough decline	-6.21%	-2.88%	-3.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.79%	1.93%	+0.86%

Volatility

SDY vs. USMV - Volatility Comparison

SPDR S&P Dividend ETF (SDY) and iShares MSCI USA Min Vol Factor ETF (USMV) have volatilities of 2.47% and 2.38%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SDY	USMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.47%	2.38%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	7.43%	5.91%	+1.52%
Volatility (1Y) Calculated over the trailing 1-year period	10.33%	8.50%	+1.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.03%	12.35%	+1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.08%	14.51%	+2.57%

SDY vs. USMV - Expense Ratio Comparison

SDY has a 0.35% expense ratio, which is higher than USMV's 0.15% expense ratio.

Dividends

SDY vs. USMV - Dividend Comparison

SDY's dividend yield for the trailing twelve months is around 2.48%, more than USMV's 1.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SDY SPDR S&P Dividend ETF	2.48%	2.61%	2.56%	2.64%	2.55%	2.63%	2.85%	2.45%	2.73%	4.69%	3.30%	6.20%
USMV iShares MSCI USA Min Vol Factor ETF	1.53%	1.49%	1.67%	1.82%	1.62%	1.26%	1.81%	1.88%	2.12%	1.77%	2.22%	2.02%

Frequently Asked Questions

Can I hold both SDY and USMV in my portfolio?

SDY and USMV have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SDY or USMV?

SDY has higher volatility (2.47%) compared to USMV (2.38%). In terms of maximum drawdown, SDY dropped -54.75% vs USMV's -33.10%.

Which ETF is better, SDY or USMV?

On 10-year performance, USMV leads with 9.93% vs 9.29% for SDY. On fees, USMV is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SDY or USMV?

Over the 10-year period, USMV has performed better with a 9.93% return vs 9.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDY or USMV?

USMV is cheaper with a 0.15% expense ratio, compared with 0.35% for SDY.

Which ETF pays a higher dividend yield, SDY or USMV?

SDY has the higher dividend yield at 2.48%, compared with 1.53% for USMV.

What is the main difference between SDY and USMV?

SDY is categorized as Mid Cap Value Equities, while USMV is Large Cap Blend Equities. SDY tracks S&P High Yield Dividend Aristocrats Index, while USMV tracks MSCI USA Minimum Volatility Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for SDY and 0.15% for USMV.

Which has better risk-adjusted returns?

SDY currently has the higher Sharpe Ratio (1.25 vs 0.52), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.