Computed head-to-head · 6 dimensions
SDY vs VYM
State Street SPDR S&P Dividend ETF versus Vanguard High Dividend Yield ETF — yield, safety, growth trend, cost, scale, and tax treatment.
VYM 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 VYM — which is better?
VYM wins this comparison 3–0 across 6 dimensions. VYM yields 2.37% — lower than SDY's 2.41% — and carries a 7.9/10 dividend safety score (Solid) vs 7.6/10 for SDY (Solid). VYM wins 3–0 on our six-dimension comparison, but SDY can still be the better fit depending on your priorities — see each dimension below.
Both tickers are closely matched on the two dimensions income investors care about most — yield and dividend safety — making this a genuine toss-up where portfolio fit, tax treatment, and expense ratio should drive the final call.
Scorecard at a glance
| Dimension | SDY | VYM | Winner |
|---|---|---|---|
| Yield | 2.41% | 2.37% | Tie |
| Dividend safety | 7.6/10 | 7.9/10 | VYM wins |
| Growth trend | — | — | Tie |
| Expense ratio | 35.00% | 4.00% | VYM wins |
| Scale | $23.5B | $95.8B | VYM wins |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 0 wins | 3 wins | VYM wins |
Dimension by dimension
SDY and VYM have nearly identical yields (2.41% vs 2.37%)
Yields are within 5 basis points — effectively a coin-flip on income.
VYM 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. VYM scores better on the weighted average of those factors.
Yield-trend comparison unavailable
One or both tickers are missing 5-year average yield data.
VYM is cheaper (4.00% vs 35.00%)
On a $10,000 position the lower expense ratio saves about $3100/year — small annually but compounds significantly over 20+ years.
On $10,000 invested, VYM's lower expense ratio saves roughly $31/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.
VYM is 4.1× 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 VYM 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 VYM — which is better?
VYM is better on our scoring, winning 3–0 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. VYM 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 VYM?
VYM 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 VYM: which has a higher dividend yield?
SDY yields 2.41% and VYM yields 2.37%. Yields are within 5 basis points — effectively a coin-flip on income.
Is SDY or VYM a safer dividend in 2026?
SDY scores 7.6/10 (Solid) on the Infnits dividend safety scale. VYM scores 7.9/10 (Solid). VYM is the safer pick on our scoring model.
Which has better dividend growth, SDY or VYM?
One or both tickers are missing 5-year average yield data.
SDY vs VYM: 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 VYM 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 VYM diversifies you or just duplicates what you hold. No account, no download.