Computed head-to-head · 6 dimensions
SDY vs VEA
State Street SPDR S&P Dividend ETF versus Vanguard FTSE Developed Markets ETF — yield, safety, growth trend, cost, scale, and tax treatment.
VEA wins 3–0 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
SDY or VEA — which is better?
VEA wins this comparison 3–0 across 6 dimensions. VEA yields 2.41% — lower than SDY's 2.41% — and carries a 8.1/10 dividend safety score (Strong) vs 7.6/10 for SDY (Solid). VEA wins 3–0 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
On dividend safety, VEA scores 8.1/10 (Strong) vs 7.6/10 (Solid) for SDY — VEA has a stronger composite of payout coverage, yield zone, and dividend trend signals. On yield, VEA's 2.41% vs 2.41% represents a $0 annual income gap on $100,000 invested.
Scorecard at a glance
| Dimension | SDY | VEA | Winner |
|---|---|---|---|
| Yield | 2.41% | 2.41% | Tie |
| Dividend safety | 7.6/10 | 8.1/10 | VEA wins |
| Growth trend | — | — | Tie |
| Expense ratio | 35.00% | 3.00% | VEA wins |
| Scale | $23.5B | $313.5B | VEA wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 0 wins | 3 wins | VEA wins |
Dimension by dimension
SDY and VEA have nearly identical yields (2.41% vs 2.41%)
Yields are within 5 basis points — effectively a coin-flip on income.
VEA wins on safety (8.1/10 vs 7.6/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. VEA scores better on the weighted average of those factors.
VEA (8.1/10) scores 0.5 points higher than SDY (7.6/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.
Yield-trend comparison unavailable
One or both tickers are missing 5-year average yield data.
VEA is cheaper (3.00% vs 35.00%)
On a $10,000 position the lower expense ratio saves about $3200/year — small annually but compounds significantly over 20+ years.
On $10,000 invested, VEA's lower expense ratio saves roughly $32/year in fees versus SDY. Over 20 years that compounds to a meaningful drag — expense ratios are one of the few costs investors fully control.
VEA is 13.4× larger by AUM
Larger funds tend to have tighter spreads, deeper liquidity, and lower closure risk.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
Full breakdown per ticker: are SDY dividends qualified and are VEA dividends qualified — each with the after-tax income at every federal bracket.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice. Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
SDY or VEA — which is better?
VEA is better on our scoring, winning 3–0 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. VEA wins 3–0 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
Which is better for income, SDY or VEA?
VEA wins 3–0 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
SDY vs VEA: which has a higher dividend yield?
SDY yields 2.41% and VEA yields 2.41%. Yields are within 5 basis points — effectively a coin-flip on income.
Is SDY or VEA a safer dividend in 2026?
SDY scores 7.6/10 (Solid) on the Infnits dividend safety scale. VEA scores 8.1/10 (Strong). VEA is the safer pick on our scoring model.
Which has better dividend growth, SDY or VEA?
One or both tickers are missing 5-year average yield data.
SDY vs VEA: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
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Compare both against your actual holdings
Put SDY and VEA into the free analyzer with the rest of your portfolio. You'll see what each one contributes to your annual income, your weighted safety score, and whether adding VEA diversifies you or just duplicates what you hold. No account, no download.