UKID vs. UKDV
For investors focused on total return, which encapsulates both capital growth and dividend income, the UK equity dividend ETF landscape offers several compelling choices. While past performance is not a guarantee of future results, a deep dive into the historical data reveals a close race between two key contenders: the iShares UK Dividend UCITS ETF (IUKD) and the SPDR S&P UK Dividend Aristocrats UCITS ETF (UKDV).
As of the latest data from summer 2025, both ETFs have demonstrated strong performance, particularly over the past year. The iShares UK Dividend UCITS ETF (IUKD), which tracks the FTSE UK Dividend+ Index of the 50 highest-yielding UK stocks, has shown impressive recent momentum.1 For investors seeking a high immediate income stream that contributes to total return, IUKD is a formidable option.
Hot on its heels is the SPDR S&P UK Dividend Aristocrats UCITS ETF (UKDV). This ETF follows a strategy of investing in UK companies that have consistently increased or maintained their dividends for at least seven consecutive years. This focus on “dividend aristocrats” can lead to a portfolio of high-quality, stable companies that offer a blend of income and capital appreciation.
For those with a broader market perspective, the Vanguard FTSE UK Equity Income Index Fund also presents a strong case. While a mutual fund rather than an ETF, its performance provides a valuable benchmark. It tracks the FTSE UK Equity Income Index, offering exposure to a wider range of dividend-paying UK companies.2
Tale of the Tape: Total Return Figures
Here’s a snapshot of the total return performance of these funds across different timeframes, based on the most recent available data:
| Fund | YTD (Year-to-Date) | 1-Year | 3-Year (Cumulative) | 5-Year (Cumulative) | Expense Ratio |
| iShares UK Dividend UCITS ETF (IUKD) | ~17.66% | ~18.19% | ~38.35% | ~110.44% | 0.40% |
| SPDR S&P UK Dividend Aristocrats UCITS ETF (UKDV) | ~9.76% | ~11.13% | ~18.71% | ~41.08% | 0.30% |
| Vanguard FTSE UK Equity Income Index Fund | – | ~16.69% (as of 30/06/24) | – | – | 0.14% |
Note: Data is based on the latest available information as of August 2025 and may be subject to change. Cumulative returns are presented for 3 and 5-year periods.
Interpreting the Numbers
From the data, the iShares UK Dividend UCITS ETF (IUKD) has exhibited a standout performance over the past year and particularly over a five-year horizon. This suggests that its strategy of focusing on the highest-yielding stocks has paid off significantly in terms of total return in the recent economic climate.
The SPDR S&P UK Dividend Aristocrats UCITS ETF (UKDV), while showing very respectable returns, has a more conservative profile. Its emphasis on dividend sustainability may appeal to investors with a longer-term, lower-risk tolerance. Its lower expense ratio is also a noteworthy advantage for long-term compounding.
The Vanguard FTSE UK Equity Income Index Fund demonstrates that a broader market approach can also yield strong results, with a very competitive 1-year return and the lowest expense ratio of the three, which can significantly enhance long-term gains.
Conclusion: Which to Choose?
For the investor purely focused on the strongest recent and medium-term total return track record, the iShares UK Dividend UCITS ETF (IUKD) currently holds the edge. However, the “best” ETF is subjective and depends on individual investment goals.
- For aggressive total return: The iShares UK Dividend UCITS ETF (IUKD) has demonstrated impressive growth.
- For a balance of quality and return: The SPDR S&P UK Dividend Aristocrats UCITS ETF (UKDV) offers a compelling strategy with a focus on sustainable dividends and a lower fee.
- For broad, low-cost exposure: The Vanguard FTSE UK Equity Income Index Fund provides a diversified and cost-effective way to access UK dividend stocks.
Investors should conduct their own due diligence, considering their personal financial situation and risk tolerance before making any investment decisions.