PAI vs SPY
Western Asset Investment Grade Income Fund Inc. vs State Street SPDR S&P 500 ETF Trust
Which is better, PAI or SPY?
Long Term Mid Quality against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
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
| Metric | PAI | SPY |
|---|---|---|
| Expense Ratio | 0.73% | 0.09%Best |
| AUM | $122M | $804.7B |
| Dividend Yield | 4.90% | 0.98% |
| Holdings | 476 | 505 |
| YTD Return | -3.78% | +11.45%Best |
| 1Y Return | -4.87% | +15.87%Best |
| 3Y Return (annualized) | +6.03% | +20.93%Best |
| 5Y Return (annualized) | -2.63% | +12.59%Best |
| Volatility (annualized) | 12.6%Best | 15.3% |
| Max Drawdown | -49.6%Best | -56.5% |
| $10,000 over 5 years | $8,752 | $18,093Best |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Blend |
| Inception | Mar 22, 1973 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 2, 1996 to Sep 15, 2026 (30.7 years).
PAI 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
PAI vs SPY Performance
Western Asset Investment Grade Income Fund Inc. (PAI) is an ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PAI returned -4.87% while SPY returned +15.87%. Year to date, PAI is down 3.78% versus a gain of 11.45% for SPY.
Over three years, PAI compounded at +6.03% per year against +20.93% for SPY; over five years the annualized figures are -2.63% and +12.59% respectively. Across the full 31-year window we track, SPY has the edge at +8.75% annualized vs +0.03%.
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 12.6% for PAI. 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 -49.6% for PAI and -56.5% 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 0.34. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PAI charges 0.73% per year while SPY charges 0.09%. On a $10,000 position that is $73 vs $9 annually, a gap of $64 per year that compounds over a long holding period. On income, PAI currently yields 4.90% against 0.98% for SPY.
Holdings Overlap
At least 0.3% of SPY's money is in holdings PAI also owns.
Stated as a floor: for PAI, our book for it covers 1.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 7 positions we hold weights for in PAI and 504 in SPY, against full books of 476 and 505.
Top Shared Holdings
| Stock | Weight in PAI | Weight in SPY | Difference |
|---|---|---|---|
| CCitigroup Inc. | 0.34% | 0.34% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of PAI and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PAI or SPY?
PAI has an expense ratio of 0.73% while SPY charges 0.09%. SPY is the cheaper option, by $64 a year on a $10,000 investment.
Which performed better, PAI or SPY?
Over the past year PAI returned -4.87% vs +15.87% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), PAI annualized +0.03% vs +8.75% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.6% for PAI. Worst drawdown: PAI -49.6% vs SPY -56.5%.
Should I hold both PAI and SPY?
PAI and SPY have a monthly-return correlation of 0.34, 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, PAI or SPY?
PAI yields 4.90% while SPY yields 0.98%, so PAI currently pays the higher dividend yield.
Is SPY better than PAI?
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.