PAB vs SPY

PAB vs SPY

Which is better, PAB or SPY?

SPY has been ahead.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SPYHigher Returns: 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

MetricPABSPY
Expense Ratio0.19%0.09%Best
AUM$98M$804.7B
Dividend Yield5.31%0.98%
Holdings436505
YTD Return-1.28%+12.47%Best
1Y Return-0.63%+17.51%Best
3Y Return (annualized)+4.39%+21.18%Best
5Y Return (annualized)-0.49%+12.88%Best
Volatility (annualized)6.4%Best15.3%
Max Drawdown-19.3%Best-24.5%
$10,000 over 5 years$9,757$18,327Best
Fund FamilyPGIM InvestmentsState Street Investment Management
CategoryFixed IncomeEquity
Style-Large Cap Blend
InceptionApr 12, 2021Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Apr 15, 2021 to Sep 11, 2026 (5.4 years).

PAB 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 5.4 years both funds cover.

PAB vs SPY Performance

PGIM Active Aggregate Bond ETF (PAB) is an ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PAB returned -0.63% while SPY returned +17.51%. Year to date, PAB is down 1.28% versus a gain of 12.47% for SPY.

Over three years, PAB compounded at +4.39% per year against +21.18% for SPY; over five years the annualized figures are -0.49% and +12.88% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 6.4% for PAB. 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 -19.3% for PAB and -24.5% 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 0.60. They move together some of the time, and apart the rest.

Fees and Cost Over Time

PAB charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, PAB currently yields 5.31% against 0.98% for SPY.

Holdings Overlap

We hold position weights for 287 holdings in PAB and 504 in SPY, totalling 63.0% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 287 positions we hold weights for in PAB and 504 in SPY, against full books of 436 and 505.

You are not choosing between two funds in isolation.

Whichever of PAB and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

PABSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, PAB or SPY?

PAB has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option, by $10 a year on a $10,000 investment.

Which performed better, PAB or SPY?

Over the past year PAB returned -0.63% vs +17.51% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PAB or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 6.4% for PAB. Worst drawdown: PAB -19.3% vs SPY -24.5%.

Should I hold both PAB and SPY?

PAB and SPY have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, PAB or SPY?

PAB yields 5.31% while SPY yields 0.98%, so PAB currently pays the higher dividend yield.

Is SPY better than PAB?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.