ETF · Broad Market

SDY(SDY)

$148.90
+0.66%
Expense Ratio
$20.7B
Total AUM
Holdings
Inception
Active Share vs VOO
Truly Active
0%20%60%100%
85.1%

AI Look-Through Summary

AI Generated

The SDY ETF maintains a substantial asset base of $20.7 billion, reflecting significant market participation in its target demographic. Its sector allocation reveals a pronounced tilt toward defensive industries, with Consumer Defensive securities comprising nearly 16% of the portfolio and Utilities accounting for over 13%. This heavy weighting suggests the fund is constructed to prioritize capital preservation during periods of economic volatility rather than aggressive growth chasing. While Technology represents roughly one-tenth of the holdings, its presence through names like Qualcomm and Texas Instruments indicates an attempt to capture innovation within a generally conservative framework, though it remains secondary to traditional stability sectors.

Concentration risk appears elevated given that the top ten constituents individually command between 1.5% and 2.4% each, yet their combined influence is substantial when aggregated across industries such as Communication Services and Real Estate. The inclusion of diverse entities like Verizon in communications alongside Kenvue and Kimberly-Clark in consumer staples creates a broad defensive net, but the reliance on these specific large-cap stocks means performance will be heavily correlated with macroeconomic factors affecting household spending and utility demand. Geographic exposure is not explicitly detailed in the provided data points, though the composition of holdings implies a primary focus on domestic or North American markets where these specific industry leaders operate.

Quantitatively, the fund's structure suggests it serves as a core holding for portfolios seeking lower beta characteristics relative to broader market indices. The balance between high-dividend-yielding staples and select technology exposure aims to smooth out return volatility without completely sacrificing upside potential from sector rotations into growth areas. Investors analyzing this vehicle should weigh the safety of its defensive tilt against the possibility of underperformance during bull markets driven by cyclical or tech-heavy sectors, as the current weightings inherently favor stability over rapid appreciation.

Generated by Qwen-32B from constituent-level data. Not investment advice. Updated: 2026-05-20 20:16:18.388643+00

🔍 Theme Alignment Audit

AI GeneratedPurity: 85/100

The investment theme implied by the ticker SDY is Dividend Aristocrats, yet a review of the top holdings reveals a portfolio that relies heavily on established mega-cap giants rather than solely companies with long histories of uninterrupted dividend growth. While names like Verizon and O appear in the list, their inclusion alongside massive technology leaders such as Qualcomm and Texas Instruments suggests a strategy where broad market stability is prioritized to maintain consistent returns. The presence of these large-cap stocks indicates that the fund may be using well-known entities to anchor performance, which can sometimes dilute the strict thematic purity expected from an Aristocrats index by including companies with shorter dividend track records or those primarily valued for their size rather than just their payout history.

Sector coherence remains high despite this reliance on mega-caps, as the weightings in Consumer Defensive, Utilities, and Industrials align closely with industries known for stable cash flows and mature business models typical of dividend payers. The concentration risk is managed effectively, evidenced by a low top-ten holding percentage that prevents any single stock from dominating the portfolio's performance trajectory. Unlike broad market indices which often suffer from extreme weightings in dominant tech firms, this fund maintains a more balanced exposure across multiple sectors including Healthcare and Financial Services, ensuring that sector drift does not compromise the intended income generation strategy. The distribution of holdings suggests a genuine attempt to replicate an index focused on stability rather than chasing high-growth thematic trends.

AI analysis of holdings alignment vs fund theme. Not investment advice. Updated: 2026-05-10 10:09:46.186008+00

🏢 Sector Analysis

AI Generated

The sector allocation of SDY demonstrates a deliberate tilt toward defensive industries, with Consumer Defensive, Industrials, and Utilities collectively accounting for over 42% of the portfolio. This heavy weighting suggests an investment thesis centered on stability and income generation rather than aggressive capital appreciation, as these sectors historically exhibit lower volatility during market downturns. The inclusion of significant portions in Financial Services and Healthcare further reinforces a focus on established businesses with predictable cash flows, while the notably smaller exposure to Communication Services and Energy indicates an avoidance of highly cyclical or volatile segments often associated with higher growth potential but greater risk.

Concentration analysis reveals that despite holding 160 distinct securities across various sectors, the top ten holdings represent only 17.4% of assets under management. This relatively low concentration metric implies a broad diversification strategy within its defined defensive universe, mitigating the impact of any single stock's performance on overall portfolio returns. The presence of major telecommunications and utility providers like Verizon and Oracle alongside semiconductor giants such as Qualcomm highlights a nuanced approach where "defensive" does not strictly mean non-technological; instead, it prioritizes companies with durable competitive moats and consistent dividend histories within those sectors.

From a factor tilt perspective, the fund likely exhibits characteristics of low beta and high quality due to its preference for mature industries with stable earnings profiles. However, this structural bias may result in underperformance during periods driven by rapid technological disruption or consumer spending surges that favor cyclical growth stocks. The minimal allocation to Real Estate and Basic Materials further narrows the scope compared to a traditional broad-market index, potentially limiting upside exposure while maintaining a risk-adjusted focus on capital preservation through established market leaders.

AI-generated sector analysis from constituent-level data. Not investment advice. Updated: 2026-05-19 16:48:29.759239+00

Flow Driver Analysis

2-Step Circle

Which larger ETFs share SDY's holdings — and mechanically drive its price through index rebalancing flows?

Approximately 100% of SDY's weight flows through these larger ETFs

Driver ETFAUMExpenseShared StocksWeight Overlap
SPTMSPTM$12B15799.8%
ONEOONEO$25M13094.4%
SPYState Street SPDR S&P 500 ETF Trust$640B0.09%10484.8%
VOOVanguard S&P 500 ETF$1.5T0.03%10384.7%
SPLGSPLG$97B10384.7%

100% of SDY's portfolio by weight is also held by SPTM. When SPTM receives inflows, it mechanically buys these shared stocks — dragging SDY's NAV along regardless of any thematic or sector catalyst. Combined, the top 5 overlapping ETFs control exposure to 100% ofSDY's weight.

Overlap computed from constituent-level holdings data across 5 ETFs. Price co-movement with driver ETFs is structural, not coincidental. Not investment advice.

ETF Look-Through Dashboard

Replaces $249/yr Morningstar

Peer through the ETF wrapper to see exactly what you own. Every metric is computed from constituent-level data.

20.7x
Weighted P/E
10.87x
Weighted P/B
2.53%
Dividend Yield
$111B
Wtd Avg Market Cap

Weighted metrics calculated based on 96% of fund assets with available data.

Herfindahl-Hirschman Concentration Index

01000200030004000106
Well Diversified
Top 5: 12.1%Top 10: 20.1%

Morningstar-Style Box

Value
Blend
Growth
Large
Mid
Small
Large Blend

Sector & Cap Explorer

Consumer Defensive15.9%Industrials13.5%Utilities12.9%Other11.9%Technology10.5%Financial Services8.9%Healthcare7.0%Consumer Cyclical5.2%Basic Materials4.8%Real Estate4.1%Energy2.8%Communication Services2.5%
Visualization Mode

ETF Fundamental Radar

Total Analysis
100% Weight
Market Cap
Large
Risk Profile
High Distress

Operational health is mixed, with the bulk of weight in the mid-range (4–6) Piotroski scores.

Piotroski F-Score (Operational Health)

Score 0-9: Measures Profitability, Leverage, and Efficiency

↑ Weight (%)100%80%60%40%20%
4%
0–3 Weak
74%
4–6 Average
22%
7–9 Strong

Computed by rolling up individual stock Piotroski F-Scores, Altman Z-Scores, and Beneish M-Scores weighted by each constituent's allocation. Data that Vanguard and BlackRock don't surface.

Dividend Safety True-Up

Deterministic
118%
Wtd FCF Payout Ratio
0.00%
TTM Yield
At Risk
Dividend Durability
118% of FCF
0% (retains all cash)50%100% (pays out everything)

The dividend-paying companies inside SDY collectively pay out 118% of their Free Cash Flow to maintain the current yield. Warning: constituent companies are paying out nearly all cash flow. A wave of dividend cuts may be imminent if earnings decline. Based on 78% of fund weight in dividend-paying stocks.

FCF Payout Ratio = Dividends Paid / Free Cash Flow, weighted by constituent allocation. Not investment advice.

Earnings vs. Price Decomposition

Proprietary
+13.0%
ETF 1Y Return
+3.7%
Wtd Earnings Growth
+9.2%
Multiple Expansion
Earnings
P/E Inflation

SDY is up 13.0% over the last 12 months. The underlying weighted earnings growth of its constituents is +3.7%. The remaining +9.2% of performance is driven by multiple expansion (P/E inflation) — prices rose faster than earnings grew.

Earnings growth = weighted average YoY EPS growth of all constituents (capped at ±500% to limit outlier distortion). Based on 99% of fund weight with earnings data. Not investment advice.

Value Creation Map

ROIC vs WACC

What percentage of SDY's weight is allocated to companies that create economic value (ROIC > WACC) vs. destroy it?

54% Creators
46% Destroyers
Value Creators (ROIC > WACC)49.7%
Value Destroyers43.0%

Of SDY's analyzed weight, 54% is invested in companies earning more than their cost of capital — genuine value creators. The remaining 46% consists of companies whose ROIC falls below their WACC, effectively destroying shareholder value with every dollar invested.

ROIC-WACC spread for 93% of fund weight with available data. Not investment advice.

Passive Crowding Score

MODERATE

How much of each constituent's market cap is structurally locked in passive ETFs — a proxy for liquidity fragility during sell-offs.

49/ 100
Wtd Avg Passive Ownership14.8%
Most Crowded HoldingCFR (44.5%)
Least CrowdedAMCR (6.8%)
Coverage87% of fund weight
0 — Low255075100 — Extreme

SDY has a Passive Crowding Score of 49/100. On average, 14.8% of the market capitalization of SDY's underlying holdings is structurally locked in passive ETF vehicles. This indicates moderate passive ownership density. Index rebalances and ETF creation/redemption activity can amplify short-term volatility in the underlying holdings.

Passive $ = Σ(ETF AUM × holding weight) across all 39 tracked ETFs. Actual passive ownership is higher (includes mutual funds, pension funds). Not investment advice.

Under the Hood — Top 15 Constituents

Top 10 Concentration17.5%
#TickerCompanyWeightP/EF-Score
1VZ
VERIZON COMMUNICATIONS INC
Communication Services
2.51%
11.7x5/9
2O
REALTY INCOME CORP
Real Estate
2.20%
50.2x5/9
3QCOM
QUALCOMM INC
Technology
1.86%
27.0x6/9
4KVUE
KENVUE INC
Consumer Defensive
1.65%
20.6x6/9
5KMB
KIMBERLY CLARK CORP
Consumer Defensive
1.62%
18.9x5/9
6TXN
TEXAS INSTRUMENTS INC
Technology
1.60%
52.3x7/9
7ADP
AUTOMATIC DATA PROCESSING
Technology
1.55%
20.7x8/9
8TGT
TARGET CORP
Consumer Defensive
1.53%
16.8x6/9
9CVX
CHEVRON CORP
Energy
1.51%
31.7x6/9
10PEP
PEPSICO INC
Consumer Defensive
1.50%
22.6x4/9
11ABBV
ABBVIE INC
Healthcare
1.42%
106.2x7/9
12EIX
EDISON INTERNATIONAL
Utilities
1.40%
7.6x6/9
13WEC
WEC ENERGY GROUP INC
Utilities
1.39%
22.3x5/9
14ADM
ARCHER DANIELS MIDLAND CO
Consumer Defensive
1.35%
35.6x4/9
15MCHP
MICROCHIP TECHNOLOGY INC
Technology
1.35%
430.2x3/9
The bottom 142 stocks in SDY account for only 75.6% of the total fund weight.Only the top 50 holdings are shown. Total holdings: 157.

Historical Holdings Snapshots

Browse how SDY’s holdings have changed across SEC filing dates. Showing top holdings per snapshot.

2026-05-24

15 holdings · 24.4% tracked weight
#TickerWeightSharesMarket Value
1VZ2.51%10,922,805
2O2.20%7,432,054
3QCOM1.86%1,828,173
4KVUE1.65%19,795,474
5KMB1.62%3,436,628
6TXN1.60%1,125,046
7ADP1.55%1,479,044
8TGT1.53%2,553,390
9CVX1.51%1,658,886
10PEP1.50%2,120,407
11ABBV1.42%1,390,648
12EIX1.40%4,186,692
13WEC1.39%2,597,676
14ADM1.35%3,673,750
15MCHP1.35%3,120,461

2026-05-23

15 holdings · 24.4% tracked weight
#TickerWeightSharesMarket Value
1VZ2.51%10,922,805
2O2.20%7,432,054
3QCOM1.86%1,828,173
4KVUE1.65%19,795,474
5KMB1.62%3,436,628
6TXN1.60%1,125,046
7ADP1.55%1,479,044
8TGT1.53%2,553,390
9CVX1.51%1,658,886
10PEP1.50%2,120,407
11ABBV1.42%1,390,648
12EIX1.40%4,186,692
13WEC1.39%2,597,676
14ADM1.35%3,673,750
15MCHP1.35%3,120,461

2026-05-22

15 holdings · 24.4% tracked weight
#TickerWeightSharesMarket Value
1VZ2.50%10,922,805
2O2.21%7,432,054
3QCOM1.77%1,828,173
4TXN1.64%1,125,046
5KVUE1.64%19,795,474
6KMB1.60%3,436,628
7ADP1.56%1,479,044
8CVX1.52%1,658,886
9PEP1.51%2,120,407
10TGT1.49%2,553,390
11ABBV1.41%1,390,648
12MCHP1.40%3,120,461
13EIX1.40%4,186,692
14WEC1.37%2,597,676
15ADM1.36%3,673,750

2026-05-21

15 holdings · 24.5% tracked weight
#TickerWeightSharesMarket Value
1VZ2.50%10,926,683
2O2.21%7,434,693
3QCOM1.71%1,828,822
4TXN1.63%1,125,445
5KVUE1.63%19,802,502
6KMB1.59%3,437,848
7CVX1.57%1,659,475
8ADP1.56%1,479,569
9TGT1.56%2,554,297
10PEP1.53%2,121,160
11ABBV1.42%1,391,142
12EIX1.42%4,188,178
13ADM1.39%3,675,054
14WEC1.39%2,598,598
15MCHP1.37%3,121,569

2026-05-20

15 holdings · 24.4% tracked weight
#TickerWeightSharesMarket Value
1VZ2.45%10,926,683
2O2.20%7,434,693
3QCOM1.78%1,828,822
4KVUE1.63%19,802,502
5TXN1.62%1,125,445
6KMB1.59%3,437,848
7ADP1.58%1,479,569
8CVX1.54%1,659,475
9PEP1.51%2,121,160
10TGT1.51%2,554,297
11ADM1.42%3,675,054
12ABBV1.40%1,391,142
13MCHP1.39%3,121,569
14EIX1.37%4,188,178
15WEC1.36%2,598,598

2026-05-19

15 holdings · 24.5% tracked weight
#TickerWeightSharesMarket Value
1VZ2.45%10,926,683
2O2.20%7,434,693
3QCOM1.79%1,828,822
4TXN1.65%1,125,445
5KVUE1.64%19,802,502
6KMB1.60%3,437,848
7ADP1.54%1,479,569
8CVX1.54%1,659,475
9PEP1.53%2,121,160
10TGT1.50%2,554,297
11ADM1.43%3,675,054
12MCHP1.42%3,121,569
13ABBV1.42%1,391,142
14EIX1.40%4,188,178
15WEC1.37%2,598,598

Source: SEC filings and fund provider disclosures. Shows last 6 snapshot dates, top 15 holdings per date by weight.

Risk Profile

14.1%
Annual Volatility
1.09
Sharpe (1Y)
0.37
Sharpe (3Y)
-14.4%
Max Drawdown (3Y)
-15.2%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Computed from 1,200+ trading days with 5% risk-free rate.

Price Chart with Moving Averages

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What Drove SDY Today?

Daily return attribution — which holdings contributed most (and least) to the fund's move.

Fund move:+0.66%(2026-06-02)

Top Contributors

+0.215%
+0.058%
+0.037%

Top Detractors

-0.012%
-0.014%
-0.014%

Attribution = holding weight × stock daily return. Only the top contributors and detractors are shown.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the ETF's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

Loading beta chart...
Rolling Beta Market (β = 1.0)

Yield & Income

0.00%
TTM Yield
30-Day SEC Yield
5Y Div CAGR

Sector Drift Over Time

How SDY’s sector allocation has shifted across snapshots. Use the slider to travel through time.

2026-05-2456 snapshots
Consumer Defensive15.9%
Industrials13.5%
Utilities12.9%
Other11.9%
Technology10.5%
Financial Services8.9%
Healthcare7.0%
Consumer Cyclical5.2%
Basic Materials4.8%
Real Estate4.1%
Energy2.8%
Communication Services2.5%
0.2%
Change since 2026-03-30
Technology
+3.5%
Energy
-2.0%
Communication Services
-1.2%
Consumer Defensive
-1.1%
Financial Services
+1.0%
Other
+0.8%
2026-03-302026-05-24

Active Conviction Tracker

Shares bought and sold between the latest two data snapshots — reveals what the fund manager is actually doing.

No position changes detected between snapshots.

Explore More

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB is for informational purposes only. Not investment advice.