The SPDR S&P 500 ETF Trust (SPY) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. SPY is a SPDR State Street Global Advisors Large Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between SPY and DIA? And which fund is better?
The expense ratio of SPY is 0.07 percentage points lower than DIA’s (0.09% vs. 0.16%). SPY also has a higher exposure to the technology sector and a lower standard deviation. Overall, SPY has provided higher returns than DIA over the past ten years.
In this article, we’ll compare SPY vs. DIA. We’ll look at performance and fund composition, as well as at their risk metrics and annual returns. Moreover, I’ll also discuss SPY’s and DIA’s holdings, industry exposure, and portfolio growth and examine how these affect their overall returns.
Summary
| SPY | DIA | |
| Name | SPDR S&P 500 ETF Trust | SPDR Dow Jones Industrial Average ETF Trust |
| Category | Large Blend | Large Value |
| Issuer | SPDR State Street Global Advisors | SPDR State Street Global Advisors |
| AUM | 374.03B | 30.46B |
| Avg. Return | 14.41% | 13.35% |
| Div. Yield | 1.3% | 1.61% |
| Expense Ratio | 0.09% | 0.16% |
If you are also looking for SPY vs. IWR, You can check out all those details.
The SPDR S&P 500 ETF Trust (SPY) is a Large Blend fund that is issued by SPDR State Street Global Advisors. It currently has 374.03B total assets under management and has yielded an average annual return of 14.41% over the past 10 years. The fund has a dividend yield of 1.3% with an expense ratio of 0.09%.
The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.
SPY’s dividend yield is 0.31% lower than that of DIA (1.3% vs. 1.61%). Also, SPY yielded on average 1.06% more per year over the past decade (14.41% vs. 13.35%). The expense ratio of SPY is 0.07 percentage points lower than DIA’s (0.09% vs. 0.16%).
Fund Composition
Industry Exposure
I have a comparison for SPY vs. EFA, You can check out all those details.
| SPY | DIA | |
| Technology | 24.22% | 17.32% |
| Industrials | 8.86% | 16.7% |
| Energy | 2.86% | 2.0% |
| Communication Services | 11.14% | 4.42% |
| Utilities | 2.45% | 0.0% |
| Healthcare | 13.09% | 17.92% |
| Consumer Defensive | 6.32% | 6.3% |
| Real Estate | 2.57% | 0.0% |
| Financial Services | 14.23% | 20.68% |
| Consumer Cyclical | 12.0% | 13.44% |
| Basic Materials | 2.27% | 1.21% |
The SPDR S&P 500 ETF Trust (SPY) has the most exposure to the Technology sector at 24.22%. This is followed by Financial Services and Healthcare at 14.23% and 13.09% respectively. Utilities (2.45%), Real Estate (2.57%), and Energy (2.86%) only make up 7.88% of the fund’s total assets.
SPY’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 6.32%, 8.86%, 11.14%, 12.0%, and 13.09%.
A pretty close comparison I have also cover is SPY vs. VXUS.
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.
DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.
SPY is 6.90% more exposed to the Technology sector than DIA (24.22% vs 17.32%). SPY’s exposure to Financial Services and Healthcare stocks is 6.45% lower and 4.83% lower respectively (14.23% vs. 20.68% and 13.09% vs. 17.92%). In total, Utilities, Real Estate, and Energy also make up 5.88% more of the fund’s holdings compared to DIA (7.88% vs. 2.00%).
Holdings
| SPY Holdings | Weight |
| Apple Inc | 5.9% |
| Microsoft Corp | 5.6% |
| Amazon.com Inc | 4.05% |
| Facebook Inc A | 2.29% |
| Alphabet Inc A | 2.02% |
| Alphabet Inc Class C | 1.96% |
| Berkshire Hathaway Inc Class B | 1.45% |
| Tesla Inc | 1.44% |
| NVIDIA Corp | 1.37% |
| JPMorgan Chase & Co | 1.29% |
SPY’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.9%, 5.6%, 4.05%, 2.29%, and 2.02%.
The SPY vs. IUSB is another great set of index’s and ETF to look at.
Alphabet Inc Class C (1.96%), Berkshire Hathaway Inc Class B (1.45%), and Tesla Inc (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SPY’s holdings at 1.37% and 1.29%.
| DIA Holdings | Weight |
| UnitedHealth Group Inc | 7.63% |
| Goldman Sachs Group Inc | 7.23% |
| The Home Depot Inc | 6.07% |
| Microsoft Corp | 5.16% |
| Salesforce.com Inc | 4.65% |
| Amgen Inc | 4.64% |
| Boeing Co | 4.56% |
| Visa Inc Class A | 4.45% |
| McDonald’s Corp | 4.4% |
| Honeywell International Inc | 4.18% |
DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.
Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.
Risk Analysis
| SPY | DIA | |
| Mean Return | 1.23 | 1.13 |
| R-squared | 100 | 93.31 |
| Std. Deviation | 13.56 | 13.68 |
| Alpha | -0.09 | -0.94 |
| Beta | 1 | 0.97 |
| Sharpe Ratio | 1.04 | 0.94 |
| Treynor Ratio | 14.12 | 13.07 |
The SPDR S&P 500 ETF Trust (SPY) has a Alpha of -0.09 with a Standard Deviation of 13.56 and a R-squared of 100. Its Mean Return is 1.23 while SPY’s Treynor Ratio is 14.12. Furthermore, the fund has a Sharpe Ratio of 1.04 and a Beta of 1.
If you need more comparisons to read try SPY vs. MBB.
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has a R-squared of 93.31 with a Alpha of -0.94 and a Mean Return of 1.13. Its Sharpe Ratio is 0.94 while DIA’s Treynor Ratio is 13.07. Furthermore, the fund has a Beta of 0.97 and a Standard Deviation of 13.68.
SPY’s Mean Return is 0.10 points higher than that of DIA and its R-squared is 6.69 points higher. With a Standard Deviation of 13.56, SPY is slightly less volatile than DIA. The Alpha and Beta of SPY are 0.85 points higher and 0.03 points higher than DIA’s Alpha and Beta.
Performance
Annual Returns
| Year | SPY | DIA |
| 2020 | 18.25% | 9.63% |
| 2019 | 31.29% | 25.09% |
| 2018 | -4.45% | -3.6% |
| 2017 | 21.69% | 27.97% |
| 2016 | 11.8% | 16.28% |
| 2015 | 1.34% | 0.1% |
| 2014 | 13.53% | 9.88% |
| 2013 | 32.21% | 29.41% |
| 2012 | 15.84% | 10.04% |
| 2011 | 2.06% | 8.21% |
| 2010 | 14.93% | 13.87% |
SPY had its best year in 2013 with an annual return of 32.21%. SPY’s worst year over the past decade yielded -4.45% and occurred in 2018. In most years the SPDR S&P 500 ETF Trust provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.53%, 14.93%, and 15.84% respectively.
The year 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| SPY | $10,000 | $41,712 | 14.41% |
| DIA | $10,000 | $37,965 | 13.35% |
A $10,000 investment in SPY would have resulted in a final balance of $41,712. This is a profit of $31,712 over 11 years and amounts to a compound annual growth rate (CAGR) of 14.41%.
With a $10,000 investment in DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.
SPY’s CAGR is 1.06 percentage points higher than that of DIA and as a result, would have yielded $3,747 more on a $10,000 investment. Thus, SPY outperformed DIA by 1.06% annually.
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