PAVE vs SPY

PAVE vs SPY

Which is better, PAVE or SPY?

Mid Cap Blend against Large Cap Blend.

SPY has a lower expense ratio. PAVE led over 5Y and the full window, SPY over 1Y and 3Y. PAVE is less concentrated, with 31.7% of the fund in its ten largest positions against 37.8%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: PAVE

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

MetricPAVESPY
Expense Ratio0.47%0.09%Best
AUM$13.3B$804.7B
Dividend Yield0.55%0.98%
Holdings102505
YTD Return+7.98%+10.96%Best
1Y Return+13.49%+15.52%Best
3Y Return (annualized)+19.87%+20.73%Best
5Y Return (annualized)+15.54%Best+12.53%
Volatility (annualized)22.8%15.8%Best
Max Drawdown-44.1%-34.1%Best
$10,000 over 5 years$20,590Best$18,044
Top 10 Weight31.7%Best37.8%
Fund FamilyGlobal X by mirae AssetState Street Investment Management
CategoryEquityEquity
StyleMid Cap BlendLarge Cap Blend
InceptionMar 6, 2017Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Mar 8, 2017 to Sep 16, 2026 (9.5 years).

PAVE 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 9.5 years both funds cover.

PAVE vs SPY Performance

Global X US Infrastructure Development ETF (PAVE) is an ETF from Global X by mirae Asset and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PAVE returned +13.49% while SPY returned +15.52%. Year to date, PAVE is up 7.98% versus a gain of 10.96% for SPY.

Over three years, PAVE compounded at +19.87% per year against +20.73% for SPY; over five years the annualized figures are +15.54% and +12.53% respectively. Across the full 10-year window we track, PAVE has the edge at +14.94% annualized vs +13.82%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PAVE has been the more volatile fund, with annualized monthly volatility of 22.8% compared with 15.8% 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 -44.1% for PAVE and -34.1% 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 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PAVE charges 0.47% per year while SPY charges 0.09%. On a $10,000 position that is $47 vs $9 annually, a gap of $38 per year that compounds over a long holding period. On income, PAVE currently yields 0.55% against 0.98% for SPY.

Holdings Overlap

PAVE already in SPY63.0%
SPY already in PAVE2.6%

63.0% of PAVE's money is in holdings SPY also owns. 2.6% of SPY's money is in holdings PAVE also owns.

The two portfolios partly overlap.

27 positions in common, counted across the 100 positions we hold weights for in PAVE and 504 in SPY, against full books of 102 and 505.

What only one of them owns

Our book lists 471 positions for SPY that do not appear in our book for PAVE (96.8% of the fund), and 71 for PAVE that do not appear in SPY (35.2%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in PAVEWeight in SPYDifference
DEDeere & Co Sedol 22612033.55%0.26%3.29%
FASTFastenal Co.3.38%0.09%3.29%
NUENucor Corp.3.34%0.09%3.25%
EMREmerson Electric Co.3.26%0.13%3.13%
UNPUnion Pacific Corp3.05%0.26%2.79%
PHParker-Hannifin Corp.3.08%0.18%2.90%
ETNEaton Corp Plc3.01%0.23%2.78%
NSCNorfolk Southern Corp3.05%0.11%2.94%
PWRQuanta Services Inc2.99%0.14%2.85%
CSXCsx Corp.2.95%0.14%2.81%

63.0% of PAVE 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.

PAVESPY

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Frequently Asked Questions

Which is cheaper, PAVE or SPY?

PAVE has an expense ratio of 0.47% while SPY charges 0.09%. SPY is the cheaper option, by $38 a year on a $10,000 investment.

Which performed better, PAVE or SPY?

Over the past year PAVE returned +13.49% vs +15.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), PAVE annualized +14.94% vs +13.82% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PAVE or SPY?

PAVE has been the more volatile fund at 22.8% annualized versus 15.8% for SPY. Worst drawdown: PAVE -44.1% vs SPY -34.1%.

Should I hold both PAVE and SPY?

PAVE and SPY have a monthly-return correlation of 0.86, 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 PAVE and SPY?

63.0% of PAVE's money is in holdings SPY also owns. 2.6% of SPY's is in holdings PAVE also owns. They hold 27 positions in common, counted across the 100 positions we hold weights for in PAVE and 504 in SPY.

Which pays a higher dividend, PAVE or SPY?

PAVE yields 0.55% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than PAVE?

SPY has a lower expense ratio. PAVE led over 5Y and the full window, SPY over 1Y and 3Y. PAVE is less concentrated, with 31.7% 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.