SDSI vs SPY

Quick Verdict

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

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSDSISPYWinner
Expense Ratio0.32%0.09%
AUM$245M$789.1B
Dividend Yield4.78%1.01%
Holdings400505
YTD Return+1.84%+13.50%
1Y Return+4.28%+23.56%
3Y Return (annualized)+5.77%+21.17%
5Y Return (annualized)-+13.46%
Volatility (annualized)1.9%15.3%
Max Drawdown-1.3%-56.5%
Fund FamilyAmerican Century InvestmentsState Street Investment Management
CategoryFixed IncomeEquity
InceptionOct 11, 2022Jan 22, 1993

SDSI vs SPY Performance

American Century Short Duration Strategic Income ETF (SDSI) is a ETF from American Century Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SDSI returned +4.28% while SPY returned +23.56%. Year to date, SDSI is up 1.84% versus a gain of 13.50% for SPY.

Over three years, SDSI compounded at +5.77% per year against +21.17% for SPY. Across the full 4-year window we track, SPY has the edge at +8.85% annualized vs +5.69%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 1.9% for SDSI. 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 -1.3% for SDSI 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SDSI charges 0.32% per year while SPY charges 0.09%. On a $10,000 position that is $32 vs $9 annually, a gap of $23 per year that compounds over a long holding period. On income, SDSI currently yields 4.78% against 1.01% for SPY.

Holdings Overlap

0.3%overlap

SDSI and SPY share 1 holdings out of 644 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SDSIWeight in SPYDifference
C0.33%0.38%0.05%

Frequently Asked Questions

Which is cheaper, SDSI or SPY?

SDSI has an expense ratio of 0.32% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $23 per year of difference.

Which performed better, SDSI or SPY?

Over the past year SDSI returned +4.28% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SDSI annualized +5.69% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, SDSI or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 1.9% for SDSI. Worst drawdown: SDSI -1.3% vs SPY -56.5%.

Should I hold both SDSI and SPY?

SDSI and SPY have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SDSI and SPY?

SDSI and SPY share 1 common holdings with a 0.3% weight overlap. Combined, they hold 644 unique securities.

Which pays a higher dividend, SDSI or SPY?

SDSI yields 4.78% while SPY yields 1.01%, so SDSI currently pays the higher dividend yield.

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