PBJ vs SPY
Invesco Food and Beverage 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 | PBJ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.09% | |
| AUM | $91M | $821.1B | |
| Dividend Yield | 1.26% | 1.01% | |
| Holdings | 32 | 505 | |
| YTD Return | +8.12% | +14.24% | |
| 1Y Return | +2.56% | +21.71% | |
| 3Y Return (annualized) | +4.04% | +22.10% | |
| 5Y Return (annualized) | +3.76% | +13.21% | |
| Volatility (annualized) | 13.0% | 15.3% | |
| Max Drawdown | -41.7% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Jan 22, 1993 |
PBJ vs SPY Performance
Invesco Food and Beverage ETF (PBJ) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PBJ returned +2.56% while SPY returned +21.71%. Year to date, PBJ is up 8.12% versus a gain of 14.24% for SPY.
Over three years, PBJ compounded at +4.04% per year against +22.10% for SPY; over five years the annualized figures are +3.76% and +13.21% respectively. Across the full 21-year window we track, SPY has the edge at +8.86% annualized vs +6.10%. 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 13.0% for PBJ. 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 -41.7% for PBJ 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PBJ charges 0.61% per year while SPY charges 0.09%. On a $10,000 position that is $61 vs $9 annually, a gap of $52 per year that compounds over a long holding period. On income, PBJ currently yields 1.26% against 1.01% for SPY.
Holdings Overlap
PBJ and SPY share 10 holdings out of 525 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBJ or SPY?
PBJ has an expense ratio of 0.61% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, PBJ or SPY?
Over the past year PBJ returned +2.56% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), PBJ annualized +6.10% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, PBJ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.0% for PBJ. Worst drawdown: PBJ -41.7% vs SPY -56.5%.
Should I hold both PBJ and SPY?
PBJ and SPY have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBJ and SPY?
PBJ and SPY share 10 common holdings with a 1.3% weight overlap. Combined, they hold 525 unique securities.
Which pays a higher dividend, PBJ or SPY?
PBJ yields 1.26% while SPY yields 1.01%, so PBJ currently pays the higher dividend yield.
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