PBDC vs SPY
Putnam BDC Income 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 | PBDC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 13.49% | 0.09% | |
| AUM | $314M | $821.1B | |
| Dividend Yield | 11.60% | 1.01% | |
| Holdings | 28 | 505 | |
| YTD Return | -3.96% | +13.17% | |
| 1Y Return | -7.15% | +21.53% | |
| 3Y Return (annualized) | +7.12% | +22.06% | |
| 5Y Return (annualized) | - | +13.35% | |
| Volatility (annualized) | 14.3% | 15.3% | |
| Max Drawdown | -20.5% | -56.5% | |
| Fund Family | Putnam Investments | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 29, 2022 | Jan 22, 1993 |
PBDC vs SPY Performance
Putnam BDC Income ETF (PBDC) is a ETF from Putnam Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PBDC returned -7.15% while SPY returned +21.53%. Year to date, PBDC is down 3.96% versus a gain of 13.17% for SPY.
Over three years, PBDC compounded at +7.12% per year against +22.06% for SPY. Across the full 4-year window we track, PBDC has the edge at +13.56% annualized vs +8.82%. 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 14.3% for PBDC. 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 -20.5% for PBDC 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBDC charges 13.49% per year while SPY charges 0.09%. On a $10,000 position that is $1349 vs $9 annually, a gap of $1340 per year that compounds over a long holding period. On income, PBDC currently yields 11.60% against 1.01% for SPY.
Holdings Overlap
PBDC and SPY share 0 holdings out of 527 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBDC or SPY?
PBDC has an expense ratio of 13.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $1340 per year of difference.
Which performed better, PBDC or SPY?
Over the past year PBDC returned -7.15% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), PBDC annualized +13.56% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, PBDC or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.3% for PBDC. Worst drawdown: PBDC -20.5% vs SPY -56.5%.
Should I hold both PBDC and SPY?
PBDC and SPY have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBDC and SPY?
PBDC and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 527 unique securities.
Which pays a higher dividend, PBDC or SPY?
PBDC yields 11.60% while SPY yields 1.01%, so PBDC currently pays the higher dividend yield.
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