LCOW vs SPY

LCOW vs SPY

Which is better, LCOW or SPY?

Nearly the same fund. SPY costs less.

SPY has a lower expense ratio. SPY led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.96. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 48.5%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricLCOWSPY
Expense Ratio0.49%0.09%Best
AUM$27M$804.7B
Dividend Yield0.60%0.98%
Holdings101505
YTD Return+10.53%+12.47%Best
1Y Return+13.27%+17.51%Best
3Y Return (annualized)-+21.18%
5Y Return (annualized)-+12.88%
Volatility (annualized)11.2%Best11.9%
Max Drawdown-10.6%-8.9%Best
$10,000 over 1.3 years$13,098$13,657Best
Top 10 Weight48.5%38.0%Best
Fund FamilyPacer ETFsState Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionMay 6, 2025Jan 22, 1993

Volatility and max drawdown, and the $10,000 over 1.3 years row, are measured over the window both funds cover: May 7, 2025 to Sep 11, 2026 (1.3 years).

LCOW vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.3 years both funds cover.

LCOW vs SPY Performance

Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) is an ETF from Pacer ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year LCOW returned +13.27% while SPY returned +17.51%. Year to date, LCOW is up 10.53% versus a gain of 12.47% for SPY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 11.9% compared with 11.2% for LCOW. 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 -10.6% for LCOW and -8.9% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

LCOW charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, LCOW currently yields 0.60% against 0.98% for SPY.

Holdings Overlap

LCOW already in SPY99.7%
SPY already in LCOW42.5%

99.7% of LCOW's money is in holdings SPY also owns. 42.5% of SPY's money is in holdings LCOW also owns.

Most of LCOW is already inside SPY. Owning both mostly buys the same companies twice.

99 positions in common, counted across the 100 positions we hold weights for in LCOW and 504 in SPY, against full books of 101 and 505.

What only one of them owns

Measured across the 100 and 504 positions we hold weights for.

SPY holds 395 positions LCOW does not, 57.0% of the fund.

Largest: AMZN 4.08%, GOOGL 3.33%, MU 1.51%, JPM 1.44%, BRK.B 1.42%

Top Shared Holdings

StockWeight in LCOWWeight in SPYDifference
NVDANvidia Corp.5.07%7.71%2.64%
AAPLApple, Inc5.20%6.83%1.63%
MSFTMicrosoft Corp 4.100 Feb 06 375.73%5.50%0.23%
AVGOBroadcom Inc5.19%2.97%2.22%
GOOGAlphabet Inc5.19%2.67%2.52%
VVisa Inc5.21%0.92%4.29%
METAMeta Platforms, Inc.4.18%1.94%2.24%
MAMastercard Inc4.90%0.69%4.21%
ABBVAbbvie Inc.4.49%0.65%3.84%
JNJJohnson & Johnson3.30%0.92%2.38%

99.7% of LCOW is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

LCOWSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, LCOW or SPY?

LCOW has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option, by $40 a year on a $10,000 investment.

Which performed better, LCOW or SPY?

Over the past year LCOW returned +13.27% vs +17.51% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), LCOW annualized +23.07% vs +27.09% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, LCOW or SPY?

SPY has been the more volatile fund at 11.9% annualized versus 11.2% for LCOW. Worst drawdown: LCOW -10.6% vs SPY -8.9%.

Should I hold both LCOW and SPY?

LCOW and SPY have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between LCOW and SPY?

99.7% of LCOW's money is in holdings SPY also owns. 42.5% of SPY's is in holdings LCOW also owns. They hold 99 positions in common, counted across the 100 positions we hold weights for in LCOW and 504 in SPY.

Which pays a higher dividend, LCOW or SPY?

LCOW yields 0.60% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than LCOW?

SPY has a lower expense ratio. SPY led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.96. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 48.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.