LCOW vs SPY
Pacer S&P 500 Quality FCF Aristocrats ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | LCOW | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.09% | |
| AUM | $27M | $821.1B | |
| Dividend Yield | 0.62% | 1.01% | |
| Holdings | 103 | 505 | |
| YTD Return | +11.87% | +14.24% | |
| 1Y Return | +17.49% | +21.71% | |
| 3Y Return (annualized) | - | +22.10% | |
| 5Y Return (annualized) | - | +13.21% | |
| Volatility (annualized) | 11.1% | 15.3% | |
| Max Drawdown | -10.6% | -56.5% | |
| Fund Family | Pacer ETFs | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 6, 2025 | Jan 22, 1993 |
LCOW vs SPY Performance
Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) 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 LCOW returned +17.49% while SPY returned +21.71%. Year to date, LCOW is up 11.87% versus a gain of 14.24% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.1% 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 -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 0.96. 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 0.62% against 1.01% for SPY.
Holdings Overlap
LCOW and SPY share 98 holdings out of 508 unique holdings combined, representing a 37.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $40 per year of difference.
Which performed better, LCOW or SPY?
Over the past year LCOW returned +17.49% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), LCOW annualized +25.81% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, LCOW or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.1% for LCOW. Worst drawdown: LCOW -10.6% vs SPY -56.5%.
Should I hold both LCOW and SPY?
LCOW and SPY have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between LCOW and SPY?
LCOW and SPY share 98 common holdings with a 37.2% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, LCOW or SPY?
LCOW yields 0.62% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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