DJD vs SPYD

DJDAInvesco Dow Jones Industrial Average Dividend ETF

SPYDAState Street SPDR Portfolio S&P 500 High Dividend ETF

In short

DJD The Dow, run through a dividend filter. DJD takes the Dow Jones Industrial Average, keeps the payers, and weights them by 12-month dividend yield instead of share price, for 0.07% a year.

SPYD Most dividend ETFs hunt for companies that keep raising payouts. SPYD skips the courtship and goes straight for the yield: roughly 80 high-dividend names out of the S&P 500, for 0.07% a year.

Stated mandate

DJD The fund provides exposure to dividend-paying equity securities in the Dow Jones Industrial Average and selects them according to 12-month dividend yield.

SPYD The fund seeks to provide returns that generally correspond to the total return of the S&P 500 High Dividend Index before fees and expenses.

Why people hold it

• DJD A rules-based screen of one of the most recognized indexes in investing: dividend-paying Dow members, ranked and weighted by trailing 12-month yield. No manager discretion.invesco.com
• 0.07% a year puts it in the same fee tier as the largest dividend index funds (SPYD at 0.07%, SCHD at 0.06%) and well under the typical dividend-screen ETF.
• Running since 2015 with quarterly payouts, and it holds close to its stated mandate: one of the more faithful implementations among dividend-screen funds.

• SPYD 0.07% a year against a 0.39% median across dividend-screen peers. It undercuts DGRO's 0.08% and sits a hair above SCHD.
• A pure yield screen, not a growth screen. Where VIG and DGRO buy payout raisers, SPYD takes the high-dividend end of the S&P 500. Different flavor of the same food group.
• Running since 2015, now a multi-billion-dollar fund and one of the more actively traded names in its cohort, so getting in and out is rarely the hard part.
• Pays quarterly and has tracked the S&P 500 High Dividend Index closely, which is the whole job for a fund like this.

Worth knowing

• DJD The Dow caps the universe at 30 names, so you get a concentrated, all-large-cap sleeve of roughly 30 stocks, not a broad dividend market.
• Yield weighting sends the biggest stakes to the highest-yielding Dow names, which tilts the portfolio toward whatever corner of the index is currently out of favor.
• It trades thinly next to the household names of the dividend category, so order size and execution matter more here.

• SPYD About 80 stocks is a narrow slice. Screening on yield pulls the sector mix away from the broad S&P 500, and the ride can be bumpier than the index it comes from.
• A high yield is a ranking, not a promise. The index sorts on payout size, not on how reliably a company has grown or defended that payout.

Full DJD profile⁠

Full SPYD profile⁠