DIVB vs SPY

Quick Verdict

DIVB has a lower expense ratio. DIVB delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: DIVBHigher Returns: DIVBMore Diversified: SPY

Side-by-Side Comparison

MetricDIVBSPYWinner
Expense Ratio0.05%0.09%
AUM$1.7B$789.1B
Dividend Yield2.27%1.01%
Holdings385505
YTD Return+26.18%+13.50%
1Y Return+36.85%+23.56%
3Y Return (annualized)+22.42%+21.17%
5Y Return (annualized)+13.67%+13.46%
Volatility (annualized)17.0%15.3%
Max Drawdown-36.9%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
InceptionNov 7, 2017Jan 22, 1993

DIVB vs SPY Performance

iShares Core Dividend ETF (DIVB) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DIVB returned +36.85% while SPY returned +23.56%. Year to date, DIVB is up 26.18% versus a gain of 13.50% for SPY.

Over three years, DIVB compounded at +22.42% per year against +21.17% for SPY; over five years the annualized figures are +13.67% and +13.46% respectively. Across the full 9-year window we track, DIVB has the edge at +13.66% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DIVB has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -36.9% for DIVB and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

DIVB charges 0.05% per year while SPY charges 0.09%. On a $10,000 position that is $5 vs $9 annually, a gap of $4 per year that compounds over a long holding period. On income, DIVB currently yields 2.27% against 1.01% for SPY.

Holdings Overlap

24.1%overlap

DIVB and SPY share 205 holdings out of 669 unique holdings combined, representing a 24.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in DIVBWeight in SPYDifference
IBM5.20%0.43%4.77%
ADP5.08%0.15%4.93%
JPM2.76%1.40%1.36%
JNJProProPro
XOMProProPro
ABBVProProPro
PAYXProProPro
HPQProProPro
PGProProPro
BACProProPro
See all 10 holdings DIVB shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, DIVB or SPY?

DIVB has an expense ratio of 0.05% while SPY charges 0.09%. DIVB is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, DIVB or SPY?

Over the past year DIVB returned +36.85% vs +23.56% for SPY, so DIVB leads on 1-year performance. Over the longest common window we track (9 years), DIVB annualized +13.66% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, DIVB or SPY?

DIVB has been the more volatile fund at 17.0% annualized versus 15.3% for SPY. Worst drawdown: DIVB -36.9% vs SPY -56.5%.

Should I hold both DIVB and SPY?

DIVB and SPY have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between DIVB and SPY?

DIVB and SPY share 205 common holdings with a 24.1% weight overlap. Combined, they hold 669 unique securities.

Which pays a higher dividend, DIVB or SPY?

DIVB yields 2.27% while SPY yields 1.01%, so DIVB currently pays the higher dividend yield.

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