How do the expense ratios compare between these two funds?

The Capital Group Dividend Value ETF (CGDV) has an expense ratio of 0.33%, while the S&P 500 ETF Trust SPDR (SPY) is significantly cheaper at 0.09%. This represents a 0.24 percentage point annual cost difference. For beginners, a higher expense ratio means more fees are deducted from returns each year, which can reduce overall portfolio growth compared to a lower-cost alternative like SPY.

What is the impact of fees on long-term investment returns?

Even a small difference in expense ratios can have a large impact over time. The 0.24% difference between CGDV and SPY may seem trivial, but compounded over decades, it can result in substantial returns differences. Lower-cost funds like SPY allow more of your investment to grow, whereas higher-cost funds require the investment to generate additional returns just to offset the fee burden.

How do the fund sizes compare, and why does it matter?

SPY is vastly larger with $785.0 billion in net assets compared to CGDV's $38.3 billion. While CGDV's size supports liquidity and institutional viability, SPY's massive scale ensures exceptional liquidity and tighter bid-ask spreads. Beginners should note that very large funds like SPY are easier to trade without significantly affecting the share price, offering greater flexibility for entry and exit.

How do the dividend yields differ between these ETFs?

CGDV offers a dividend yield of 1.17%, which is slightly higher than SPY's 0.98%. This difference is relevant for investors seeking income. However, yield is just one factor; CGDV focuses on dividend value strategies, while SPY tracks the broader market. The 0.19 percentage point difference reflects these different underlying strategies rather than a pure income guarantee for either fund.

What do the top holdings reveal about each fund?

Both funds share significant overlap in their top ten holdings, including Microsoft (MSFT), Nvidia (NVDA), Meta Platforms (META), Broadcom (AVGO), and Alphabet (GOOGL). This indicates that despite their different labels, both are heavily influenced by mega-cap technology stocks. Investors might expect a

How do the fund sizes compare?

SPY is substantially larger with $785.0 billion in net assets compared to CGDV's $38.3 billion. While CGDV's scale is sufficient for institutional and retail liquidity, SPY's massive size ensures exceptionally tight bid-ask spreads and deep secondary market activity. For most investors, this difference highlights SPY's status as a primary market liquidity tool, though CGDV remains viable given its asset base.

What is the difference between a Value fund and a Blend fund?

CGDV is categorised as Large Value, seeking companies that appear undervalued relative to their fundamentals. SPY is Large Blend, representing the middle ground of the US large-cap market. While both may hold similar tech names currently, their underlying philosophies differ. Value strategies aim for outperformance through valuation, while Blend seeks to replicate the average market performance without specific factor tilts.

How do the inception dates affect the track record?

SPY launched in January 1993, providing a long-term benchmark for US equity performance with over thirty years of history. In contrast, CGDV is newer, having launched in February 2022. This means CGDV has a short track record of under four years. Beginners should be cautious of limited historical data when evaluating the long-term consistency of newer funds.

What are the implications of mega-cap tech concentration?

Both funds rely heavily on top technology stocks, creating similar risk exposures despite different strategies. In CGDV, these stocks are weighted to drive dividend value, while in SPY, they reflect market capitalisation. If tech performs well, both benefit; if it struggles, both may face headwinds. Investors should recognise that a 'diversified' ETF can still have significant sector concentration risks.

How do sector weights compare for these funds?

Detailed sector weight breakdowns are not available for either CGDV or SPY in this dataset. However, the top holdings for both funds are dominated by information technology and communication services companies. The absence of explicit sector weights makes precise comparison difficult, so investors must look at the actual holdings to understand the concentration levels within these funds.

Which fund is better for core portfolio holdings?

SPY is frequently regarded as a core holding due to its low expense ratio, liquidity, and 1993 track record. CGDV is better suited for those specifically seeking a value-oriented strategy. This is not a recommendation but a neutral description; core holdings typically require low costs and broad market representation, while satellite holdings might have specific factor goals like value.

How do ETF distributions work compared to mutual funds?

Both CGDV and SPY distribute dividends, but ETFs typically use in-kind redemptions for tax efficiency. Unlike some mutual funds, you receive cash from distributions based on the underlying holdings' payouts. CGDV aims to capture dividend value (1.17% yield), while SPY passes through the S&P 500 yield (0.98%). Investors should reinvest these or plan for the taxable event if in a standard account.

CGDV vs SPY

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Capital Group Dividend Value ETF and S&P 500 ETF Trust SPDR. This page analyses fees, holdings, dividends and how each fund tracks its market. CGDV carries a 0.33% expense ratio versus SPY at 0.09%. Both share top holdings like MSFT and NVDA, with dividends of 1.17% and 0.98% respectively. Educational content, not financial advice.

Compare Capital Group Dividend Value ETF and S&P 500 ETF Trust SPDR. This page analyses fees, holdings, dividends and how each fund tracks its market. CGDV carries a 0.33% expense ratio versus SPY at ...

Fund Snapshot

Key Fund Metrics

CGDV

Metric

SPY

0.33%

Expense Ratio

0.09%

1.17%

Dividend Yield

0.98%

$38.26B

Net Assets

$785.05B

59

Holdings

505

Feb 22, 2022

Inception Date

Jan 22, 1993

–

Index Tracked

–

Large Value

Fund Category

Large Blend

SPY costs about $24.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	CGDV	SPY
MSFTMicrosoft Corporation	7.59%	5.56%
NVDANVIDIA Corporation	6.56%	8.16%
METAMeta Platforms, Inc.	5.06%	2.23%
AVGOBroadcom Inc.	4.60%	2.58%
GOOGLAlphabet Inc.	3.73%	3.11%

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Investment Analysis

CGDV

Pros

The fund's $38.3 billion net assets indicate substantial scale, supporting operational viability and liquidity for institutional and retail investors.
A $38.3 billion asset base and inclusion of major tech names like Microsoft and Nvidia provide exposure to market-leading, liquid corporations.
The 1.17% dividend yield is higher than the 0.98% yield of a standard S&P 500 tracker, offering a slightly larger income component.

Considerations

The 0.33% expense ratio is 0.24 percentage points higher than the SPY's 0.09%, increasing the annual cost of investing.
Inception in February 2022 means a tracking record of under four years, limiting long-term performance verification against the index or peers.
Top holdings are heavily weighted towards mega-cap technology stocks, reducing the diversification typically expected from a large-value dividend strategy.

SPY

Pros

The fund's $785.0 billion net assets ensure exceptional liquidity, tight bid-ask spreads, and deep secondary market activity across global exchanges.
Since its January 1993 inception, the fund has established a long track record as a core large-cap U.S. equity benchmark.
The 0.09% expense ratio is 0.24 percentage points lower than the 0.33% cost of CGDV, providing a cheaper baseline cost structure.

Considerations

The 0.98% dividend yield is lower than CGDV's 1.17% yield, making it less attractive for income-focused portfolio strategies.
Mega-cap concentration in Nvidia (8.16%) and Apple (7.44%) means performance is significantly driven by a handful of technology firms.
A 0.98% yield and large-cap tilt provide no sector or factor tilts, resulting in minimal income advantage over inflation-adjusted cash.

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About CGDV and SPY

CGDV (CGDV)

The Capital Group Dividend Value ETF (CGDV) is a large-cap value fund designed to provide investors with exposure to dividend-paying companies. Launched in February 2022, it holds a concentrated portfolio of 59 positions, focusing on established firms with potential for income and value appreciation. The fund carries an expense ratio of 0.33%, which is moderate for an actively managed ETF strategy. With net assets of USD 38.26 billion, it offers substantial liquidity. Investors should note its current dividend yield of 1.17%, which provides modest income compared to high-yield sectors. As with all value strategies, performance can vary significantly depending on market cycles and economic conditions. It is important to remember that capital values can rise as well as fall, and dividends are not guaranteed. This fund suits those looking for a balanced approach to large-cap value investing within an ETF wrapper, but thorough personal research is always recommended before making any investment decisions.

SPY (SPY)

SPDR S&P 500 ETF Trust (SPY) is an exchange‑traded fund designed to track the S&P 500 index, offering investors broad exposure to large‑capitalisation US equities. It is widely used by retail and institutional investors for core portfolio allocation, tactical trading and hedging because of its deep liquidity and transparent holdings. SPY distributes dividends (typically quarterly) and reflects the performance of the underlying index, so returns move with the US large‑cap market. As with any equity product, value can fall as well as rise and past performance is not a guide to the future. Costs, tax considerations and suitability will depend on an individual’s circumstances; consult official documents and consider seeking independent advice where appropriate. This summary is general educational information and not personalised investment advice.

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CGDV vs SPY

Fund Snapshot