SDFI vs SPY
SDFI vs SPY
AB Short Duration Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SDFI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.09% | |
| AUM | $185M | $789.1B | |
| Dividend Yield | 4.54% | 1.01% | |
| Holdings | 552 | 505 | |
| YTD Return | +1.17% | +9.93% | |
| 1Y Return | +3.79% | +19.50% | |
| 3Y Return (annualized) | - | +19.33% | |
| 5Y Return (annualized) | - | +12.82% | |
| Volatility (annualized) | 1.8% | 15.3% | |
| Max Drawdown | -1.2% | -56.5% | |
| Fund Family | AllianceBernstein L.P. | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 10, 2024 | Jan 22, 1993 |
SDFI vs SPY Performance
AB Short Duration Income ETF (SDFI) is a ETF from AllianceBernstein L.P. and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SDFI returned +3.79% while SPY returned +19.50%. Year to date, SDFI is up 1.17% versus a gain of 9.93% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 1.8% for SDFI. 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 -1.2% for SDFI 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SDFI charges 0.30% per year while SPY charges 0.09%. On a $10,000 position that is $30 vs $9 annually, a gap of $21 per year that compounds over a long holding period. On income, SDFI currently yields 4.54% against 1.01% for SPY.
Holdings Overlap
SDFI and SPY share 0 holdings out of 844 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SDFI or SPY?
SDFI has an expense ratio of 0.30% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, SDFI or SPY?
Over the past year SDFI returned +3.79% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SDFI annualized +5.09% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, SDFI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.8% for SDFI. Worst drawdown: SDFI -1.2% vs SPY -56.5%.
Should I hold both SDFI and SPY?
SDFI and SPY have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SDFI and SPY?
SDFI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 844 unique securities.
Which pays a higher dividend, SDFI or SPY?
SDFI yields 4.54% while SPY yields 1.01%, so SDFI currently pays the higher dividend yield.
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