PEY vs SPYD

PEYCInvesco High Yield Equity Dividend Achievers ETF

SPYDAState Street SPDR Portfolio S&P 500 High Dividend ETF

In short

PEY Two screens stacked: ten straight years of dividend increases, then the 50 highest yielders, weighted by yield instead of company size. Running since 2004, paying monthly, at 0.68%.

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

PEY The fund seeks to track, before fees and expenses, the NASDAQ US Dividend Achievers 50 Index. It normally invests at least 90% of assets in dividend-paying common stocks comprising that index.

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

• PEY Names must have raised dividends ten years running before the yield hunt starts; the index then takes the top 50 by yield, reconstituted each March and rebalanced quarterly.nasdaq.comnasdaq.com 2invesco.com
• Income arrives monthly rather than quarterly, from a concentrated book of about 50 dividend payers.
• Listed in December 2004, one of the longest-running dividend screens in ETF form, so its behavior across multiple market cycles is lived history, not a backtest.

• 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

• PEY The 0.68% fee sits above the category median and well above index rivals such as SCHD at 0.06% and VIG at 0.04%.
• Weighting by dividend yield, not company size, puts the heaviest weights on the biggest payers, and a fat yield sometimes reflects a beaten-down price rather than a thriving business.nasdaq.com
• About 50 holdings is a narrow slice of the dividend market, so individual names and sector tilts carry real weight.

• 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 PEY profile⁠

Full SPYD profile⁠