HERD vs SPY
Pacer Cash Cows Fund of Funds ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. HERD delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | HERD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.74% | 0.09% | |
| AUM | $98M | $789.1B | |
| Dividend Yield | 2.89% | 1.01% | |
| Holdings | 7 | 505 | |
| YTD Return | +18.27% | +13.39% | |
| 1Y Return | +31.88% | +22.52% | |
| 3Y Return (annualized) | +16.22% | +21.36% | |
| 5Y Return (annualized) | +10.95% | +13.19% | |
| Volatility (annualized) | 18.3% | 15.3% | |
| Max Drawdown | -39.4% | -56.5% | |
| Fund Family | Pacer ETFs | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 3, 2019 | Jan 22, 1993 |
HERD vs SPY Performance
Pacer Cash Cows Fund of Funds ETF (HERD) is a ETF from Pacer ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HERD returned +31.88% while SPY returned +22.52%. Year to date, HERD is up 18.27% versus a gain of 13.39% for SPY.
Over three years, HERD compounded at +16.22% per year against +21.36% for SPY; over five years the annualized figures are +10.95% and +13.19% respectively. Across the full 7-year window we track, HERD has the edge at +13.48% annualized vs +8.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HERD has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -39.4% for HERD and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HERD charges 0.74% per year while SPY charges 0.09%. On a $10,000 position that is $74 vs $9 annually, a gap of $65 per year that compounds over a long holding period. On income, HERD currently yields 2.89% against 1.01% for SPY.
Holdings Overlap
HERD and SPY share 0 holdings out of 509 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HERD or SPY?
HERD has an expense ratio of 0.74% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, HERD or SPY?
Over the past year HERD returned +31.88% vs +22.52% for SPY, so HERD leads on 1-year performance. Over the longest common window we track (7 years), HERD annualized +13.48% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, HERD or SPY?
HERD has been the more volatile fund at 18.3% annualized versus 15.3% for SPY. Worst drawdown: HERD -39.4% vs SPY -56.5%.
Should I hold both HERD and SPY?
HERD and SPY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HERD and SPY?
HERD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, HERD or SPY?
HERD yields 2.89% while SPY yields 1.01%, so HERD currently pays the higher dividend yield.
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