Computed head-to-head · 6 dimensions
SDY vs VWO
State Street SPDR S&P Dividend ETF versus Vanguard FTSE Emerging Markets ETF — yield, safety, growth trend, cost, scale, and tax treatment.
VWO wins 3–1 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
SDY or VWO — which is better?
VWO wins this comparison 3–1 across 6 dimensions. VWO yields 2.05% — lower than SDY's 2.41% — and carries a 7.9/10 dividend safety score (Solid) vs 7.6/10 for SDY (Solid). VWO wins 3–1 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
On yield alone, SDY generates 2.41% vs 2.05% — a 0.36% difference that translates to $360 more per year on a $100,000 investment.
Scorecard at a glance
| Dimension | SDY | VWO | Winner |
|---|---|---|---|
| Yield | 2.41% | 2.05% | SDY wins |
| Dividend safety | 7.6/10 | 7.9/10 | VWO wins |
| Growth trend | — | — | Tie |
| Expense ratio | 35.00% | 6.00% | VWO wins |
| Scale | $23.5B | $164.7B | VWO wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 1 wins | 3 wins | VWO wins |
Dimension by dimension
SDY wins on yield (2.41% vs 2.05%)
On a $10,000 investment that's about $36 more in annual dividend income before taxes — though higher yield often comes with higher risk.
SDY's higher yield (2.41%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus VWO's 2.05% — especially if the higher yield is driven by covered calls or a falling share price.
VWO wins on safety (7.9/10 vs 7.6/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. VWO scores better on the weighted average of those factors.
Yield-trend comparison unavailable
One or both tickers are missing 5-year average yield data.
VWO is cheaper (6.00% vs 35.00%)
On a $10,000 position the lower expense ratio saves about $2900/year — small annually but compounds significantly over 20+ years.
On $10,000 invested, VWO's lower expense ratio saves roughly $29/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.
VWO is 7.0× 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 VWO 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 VWO — which is better?
VWO is better on our scoring, winning 3–1 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. VWO wins 3–1 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 VWO?
VWO wins 3–1 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
SDY vs VWO: which has a higher dividend yield?
SDY yields 2.41% and VWO yields 2.05%. On a $10,000 investment that's about $36 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is SDY or VWO a safer dividend in 2026?
SDY scores 7.6/10 (Solid) on the Infnits dividend safety scale. VWO scores 7.9/10 (Solid). VWO is the safer pick on our scoring model.
Which has better dividend growth, SDY or VWO?
One or both tickers are missing 5-year average yield data.
SDY vs VWO: 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.
Get emailed when SDY vs VWO data updates.
Compare both against your actual holdings
Put SDY and VWO 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 VWO diversifies you or just duplicates what you hold. No account, no download.