SDY: STATE STREET(R) SPDR(R) S&P(R) DIVIDEND ETF
What this ETF is trying to do
The STATE STREET(R) SPDR(R) S&P(R) DIVIDEND ETF (SDY) is designed to provide investors with exposure to dividend-paying companies. It holds a variety of stocks, with top holdings including Verizon Communications Inc (3.15%), Accenture PLC Class A (3.08%), and Chevron Corp (2.05%). As of October 4, 2026, the fund held a partial list of 158 total holdings.
What the numbers show
As of September 18, 2026, the current price of the ETF is $150.78. To understand how the fund has performed, we look at two different types of returns:
• Price Return: This measures only the change in the share price. The one-year price return is 7.80%, and the three-year price return is 25.99%.
• Total Return: This reflects the overall return, including the distributions paid out to investors. The one-year total return is 10.64%, and the three-year total return is 35.44%.
For a simple example, if you had invested $10,000 based on the estimated price from roughly one year ago ($139.87), the price-only increase would have grown that amount to approximately $10,780.
Income and distribution explanation
This ETF usually pays distributions quarterly. Over the last 12 months, it made 4 payouts. The distribution yield is 2.47%.
It is important for new investors to remember that a distribution yield is not the same as a total return. While distributions provide cash income, they do not guarantee that the original investment (the principal) will stay the same or grow.
NAV erosion explanation
"NAV erosion" happens when the net asset value of a fund declines over time, which can eat away at an investor's principal. StockValueFinder uses an erosion-risk score to measure this.
SDY has an erosion score of 100, and the erosion label states "No price erosion detected." Additionally, the severe erosion-risk flag is false, meaning the fund's price trend did not trigger a warning.
Pros
• Positive Growth: The fund has shown positive price and total returns over the short and long term.
• Stability: The erosion-risk measurement is rated as "good."
• Consistent Income: The fund has a history of quarterly distributions.
Cons
• Moderate Yield: The distribution yield of 2.47% may be lower than what some high-income seekers look for.
• Market Risk: Like all ETFs, the share price can fluctuate.
Beginner takeaway
SDY is an ETF that focuses on dividend-paying stocks. It has shown growth in both its share price and its total return over the last three years. While it provides regular cash income, investors should always look at the total return rather than the distribution yield alone to see the full picture of the fund's performance.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | VERIZON COMMUNICATIONS INC | VZ | 3.15% |
| 2 | ACCENTURE PLC CLASS A | ACN | 3.08% |
| 3 | CHEVRON CORP | CVX | 2.05% |
| 4 | REALTY INCOME CORP | O | 2.01% |
| 5 | PEPSICO INC | PEP | 1.88% |
| 6 | MEDTRONIC PLC | MDT | 1.80% |
| 7 | TARGET CORP | TGT | 1.77% |
| 8 | NIKE INC CLASS B | NKE | 1.53% |
| 9 | KENVUE INC | KVUE | 1.49% |
| 10 | AUTOMATIC DATA PROCESSING INC | ADP | 1.48% |