USMV vs. SDY
Compare and contrast key facts about iShares Edge MSCI Min Vol USA ETF (USMV) and SPDR S&P Dividend ETF (SDY).
USMV and SDY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. USMV is a passively managed fund by iShares that tracks the performance of the MSCI USA Minimum Volatility Index. It was launched on Oct 18, 2011. SDY is a passively managed fund by State Street that tracks the performance of the S&P High Yield Dividend Aristocrats Index. It was launched on Nov 15, 2005. Both USMV and SDY 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: USMV or SDY.
Key characteristics
| USMV | SDY | |
|---|---|---|
| YTD Return | 3.79% | 3.07% |
| 1Y Return | 12.35% | 7.18% |
| 3Y Return (Ann) | 5.40% | 3.74% |
| 5Y Return (Ann) | 8.13% | 7.65% |
| 10Y Return (Ann) | 10.35% | 9.40% |
| Sharpe Ratio | 1.41 | 0.58 |
| Daily Std Dev | 8.49% | 11.76% |
| Max Drawdown | -33.10% | -54.75% |
| Current Drawdown | -3.52% | -2.40% |
Correlation
The correlation between USMV and SDY is 0.85, 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
USMV vs. SDY - Performance Comparison
In the year-to-date period, USMV achieves a 3.79% return, which is significantly higher than SDY's 3.07% return. Over the past 10 years, USMV has outperformed SDY with an annualized return of 10.35%, while SDY has yielded a comparatively lower 9.40% 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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USMV vs. SDY - Expense Ratio Comparison
USMV has a 0.15% expense ratio, which is lower than SDY's 0.35% expense ratio.
Risk-Adjusted Performance
USMV vs. SDY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Edge MSCI Min Vol USA ETF (USMV) and SPDR S&P Dividend ETF (SDY). 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
USMV vs. SDY - Dividend Comparison
USMV's dividend yield for the trailing twelve months is around 1.81%, less than SDY's 2.57% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
USMV iShares Edge MSCI Min Vol USA ETF | 1.81% | 1.82% | 1.62% | 1.26% | 1.81% | 1.88% | 2.12% | 1.77% | 2.22% | 2.02% | 1.88% | 2.18% |
SDY SPDR S&P Dividend ETF | 2.57% | 2.64% | 2.55% | 2.63% | 2.85% | 2.45% | 2.73% | 4.69% | 3.30% | 6.20% | 4.74% | 3.95% |
Drawdowns
USMV vs. SDY - Drawdown Comparison
The maximum USMV drawdown since its inception was -33.10%, smaller than the maximum SDY drawdown of -54.75%. Use the drawdown chart below to compare losses from any high point for USMV and SDY. For additional features, visit the drawdowns tool.
Volatility
USMV vs. SDY - Volatility Comparison
The current volatility for iShares Edge MSCI Min Vol USA ETF (USMV) is 2.43%, while SPDR S&P Dividend ETF (SDY) has a volatility of 3.13%. This indicates that USMV experiences smaller price fluctuations and is considered to be less risky than SDY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.