PALC vs SPY
Pacer Lunt Large Cap Multi-Factor Alternator ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, PALC or SPY?
SPY has been ahead.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. PALC is less concentrated, with 27.9% of the fund in its ten largest positions against 37.8%.
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 | PALC | SPY |
|---|---|---|
| Expense Ratio | 0.60% | 0.09%Best |
| AUM | $211M | $804.7B |
| Dividend Yield | 1.06% | 0.98% |
| Holdings | 184 | 505 |
| YTD Return | +6.52% | +13.82%Best |
| 1Y Return | +9.32% | +16.96%Best |
| 3Y Return (annualized) | +15.48% | +22.97%Best |
| 5Y Return (annualized) | +8.55% | +13.73%Best |
| Volatility (annualized) | 17.2% | 15.4%Best |
| Max Drawdown | -24.4%Best | -24.5% |
| $10,000 over 5 years | $15,071 | $19,027Best |
| Top 10 Weight | 27.9%Best | 37.8% |
| Fund Family | Pacer ETFs | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jun 24, 2020 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jun 25, 2020 to Sep 21, 2026 (6.2 years).
PALC 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 6.2 years both funds cover.
PALC vs SPY Performance
Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) 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 PALC returned +9.32% while SPY returned +16.96%. Year to date, PALC is up 6.52% versus a gain of 13.82% for SPY.
Over three years, PALC compounded at +15.48% per year against +22.97% for SPY; over five years the annualized figures are +8.55% and +13.73% respectively. Across the full 6-year window we track, SPY has the edge at +17.33% annualized vs +15.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PALC has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 15.4% 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 -24.4% for PALC 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PALC charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, PALC currently yields 1.06% against 0.98% for SPY.
Holdings Overlap
99.8% of PALC's money is in holdings SPY also owns. 26.0% of SPY's money is in holdings PALC also owns.
Most of PALC is already inside SPY. Owning both mostly buys the same companies twice.
182 positions in common, counted across the 183 positions we hold weights for in PALC and 504 in SPY, against full books of 184 and 505.
What only one of them owns
Measured across the 183 and 504 positions we hold weights for.
SPY holds 315 positions PALC does not, 73.4% of the fund.
Largest: NVDA 8.01%, AAPL 7.26%, MSFT 5.66%, GOOGL 2.99%, AVGO 2.66%
Top Shared Holdings
| Stock | Weight in PALC | Weight in SPY | Difference |
|---|---|---|---|
| AMZNAmazon.Com Inc | 2.59% | 3.79% | 1.20% |
| BACBank of America Corp.: Financials | 4.49% | 0.62% | 3.87% |
| METAMeta Platforms Inc | 2.38% | 1.93% | 0.45% |
| JPMJpmorgan Chase | 2.73% | 1.45% | 1.28% |
| BRK.BBerkshire Hathaway Inc Brk/B Us Equity | 2.44% | 1.40% | 1.04% |
| WFCWells Fargo & Co. | 3.09% | 0.40% | 2.69% |
| CCitigroup Inc. | 3.03% | 0.34% | 2.69% |
| ABBVAbbvie Inc. | 2.37% | 0.70% | 1.67% |
| GSGoldman Sachs Group Inc/The | 2.36% | 0.45% | 1.91% |
| TBBAt&t Inc | 2.37% | 0.27% | 2.10% |
99.8% of PALC 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PALC or SPY?
PALC has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option, by $51 a year on a $10,000 investment.
Which performed better, PALC or SPY?
Over the past year PALC returned +9.32% vs +16.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), PALC annualized +15.00% vs +17.33% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PALC or SPY?
PALC has been the more volatile fund at 17.2% annualized versus 15.4% for SPY. Worst drawdown: PALC -24.4% vs SPY -24.5%.
Should I hold both PALC and SPY?
PALC and SPY have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PALC and SPY?
99.8% of PALC's money is in holdings SPY also owns. 26.0% of SPY's is in holdings PALC also owns. They hold 182 positions in common, counted across the 183 positions we hold weights for in PALC and 504 in SPY.
Which pays a higher dividend, PALC or SPY?
PALC yields 1.06% while SPY yields 0.98%, so PALC currently pays the higher dividend yield.
Is SPY better than PALC?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. PALC is less concentrated, with 27.9% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.