Why does SPYD have such heavy REIT exposure?

SPYD selects the 80 highest-yielding S&P 500 stocks and weights them equally. That pure yield ranking can cause higher-yield sectors to become oversized at rebalance dates, which is why the fund is more sector-concentrated than VYM.

Is SPYD's higher yield worth the concentration risk?

Only if you can tolerate more sector concentration. SPYD's higher yield comes with less diversification than VYM and can lag when the fund's higher-yield sectors fall out of favor.

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ETF Comparison

SPYD vs VYM: Pure High Yield or Diversified High Yield?

SPYD holds the 80 highest-yielding S&P 500 stocks equally weighted; VYM holds 400+ high-yielders by market cap. Compare yield, sector tilt, and risk.

Data as of April 27, 2026

SPYD

SPDR Portfolio S&P 500 High Dividend ETF

State Street SPDR

High Dividend Yield

Price

$46.03

Yield (TTM)

4.42%

VYM

Vanguard High Dividend Yield ETF

Vanguard

High Dividend Yield

Price

$154.95

Yield (TTM)

2.41%

Quick Comparison Summary

SPYD vs VYM: compare dividend yield (4.4% vs 2.4%), expense ratio (0.07% vs 0.04%), holdings, returns, and our verdict for dividend investors.

Side-by-Side Metrics

Metric	SPYD	VYM
Issuer	State Street SPDR	Vanguard
Inception	2015-10-21	2006-11-10
Category	High Dividend Yield	High Dividend Yield
Price	$46.03	$154.95
NAV	$46.03	$154.96
Dividend Yield (TTM)	4.42%	2.41%
Expense Ratio	0.07%	0.04%
Distribution Frequency	Quarterly	Quarterly
AUM	$7.3B	$76.7B

Total Returns

3Y and 5Y figures are annualized. A 0% value indicates the fund had not been listed for the full period.

Holdings & Sector Exposure

SPYD

Top 5 / 5 shown

T
AT&T
1.85%
VZ
Verizon
1.78%
PFE
Pfizer
1.72%
MO
Altria
1.68%
BMY
Bristol-Myers Squibb
1.62%

Sector Weights

Real Estate18.4%
Utilities16.5%
Financials15.8%
Consumer Staples12.4%
Energy10.2%
Health Care9.4%

VYM

Top 5 / 5 shown

JPM
JPMorgan Chase
3.92%
AVGO
Broadcom
3.41%
XOM
ExxonMobil
3.05%
JNJ
Johnson & Johnson
2.48%
PG
Procter & Gamble
2.31%

Sector Weights

Financials21.5%
Health Care13.8%
Consumer Staples12.6%
Industrials11.4%
Energy9.8%
Information Tech9.1%

Pros & Cons

SPYDPros

Higher yield (~4.4%)
Equal weighting reduces single-name risk per position
0.07% expense ratio is very competitive

VYMPros

400+ holdings — broad diversification
Lower 0.04% expense ratio
Market-cap weighting tilts toward larger, more stable names

SPYDCons

Heavier sector bets than VYM from pure yield selection
No quality screens — includes yield traps
Underperformed VYM on total return basis

VYMCons

Lower yield (~2.4%)

The Verdict

SPYD pays a much higher yield with much higher concentration risk; VYM is the safer diversified pick. SPYD's equal-weighted construction (~1.25% per holding) and pure yield ranking produce ~4.4% yield with meaningfully higher sector concentration than VYM. VYM's market-cap weighting captures 400+ names with a ~2.4% yield and broader exposure.

Best for

SPYD

Income investors who want maximum current yield from S&P 500 names

Best for

VYM

Investors who want diversified high-yield exposure as a portfolio core

Strategy Summary

SPYD

Tracks the S&P 500 High Dividend Index — the 80 highest-yielding stocks in the S&P 500, equally weighted. Pure yield maximization within a large-cap universe.

VYM

Tracks the FTSE High Dividend Yield Index — U.S. stocks with above-average forecast dividend yields, excluding REITs. Broad, market-cap-weighted exposure for low-cost income.

Frequently Asked Questions

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Disclaimer: This page is for educational purposes only and is not financial, investment, or tax advice. ETF data is sourced from issuer fact sheets and may be slightly out of date. Past performance is not indicative of future results. Always consult a qualified advisor before making investment decisions.