PBP vs SPY

PBP vs SPY

Which is better, PBP or SPY?

All Cap Blend against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 38.3%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: SPY

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

MetricPBPSPY
Expense Ratio0.29%0.09%Best
AUM$380M$804.7B
Dividend Yield10.40%0.98%
Holdings508505
YTD Return+1.22%+10.96%Best
1Y Return+6.78%+15.52%Best
3Y Return (annualized)+12.05%+20.73%Best
5Y Return (annualized)+7.35%+12.53%Best
Volatility (annualized)49.4%15.7%Best
Max Drawdown-79.6%-54.5%Best
$10,000 over 5 years$14,256$18,044Best
Top 10 Weight38.3%37.8%Best
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
StyleAll Cap BlendLarge Cap Blend
InceptionDec 20, 2007Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Dec 20, 2007 to Sep 16, 2026 (18.7 years).

PBP 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 18.7 years both funds cover.

PBP vs SPY Performance

Invesco S&P 500 BuyWrite ETF (PBP) is an ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PBP returned +6.78% while SPY returned +15.52%. Year to date, PBP is up 1.22% versus a gain of 10.96% for SPY.

Over three years, PBP compounded at +12.05% per year against +20.73% for SPY; over five years the annualized figures are +7.35% and +12.53% respectively. Across the full 19-year window we track, SPY has the edge at +9.56% annualized vs +5.55%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PBP has been the more volatile fund, with annualized monthly volatility of 49.4% compared with 15.7% 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 -79.6% for PBP and -54.5% 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 0.13. They move largely independently of each other.

Fees and Cost Over Time

PBP charges 0.29% per year while SPY charges 0.09%. On a $10,000 position that is $29 vs $9 annually, a gap of $20 per year that compounds over a long holding period. On income, PBP currently yields 10.40% against 0.98% for SPY.

Holdings Overlap

PBP already in SPY98.9%
SPY already in PBP97.6%

98.9% of PBP's money is in holdings SPY also owns. 97.6% of SPY's money is in holdings PBP also owns.

Most of PBP is already inside SPY. Owning both mostly buys the same companies twice.

486 positions in common, counted across the 491 positions we hold weights for in PBP and 504 in SPY, against full books of 508 and 505.

What only one of them owns

Our book lists 15 positions for SPY that do not appear in our book for PBP (1.9% of the fund), and 3 for PBP that do not appear in SPY (0.4%).

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 PBPWeight in SPYDifference
NVDANvidia Corp8.18%8.01%0.17%
AAPLApple, Inc7.12%7.26%0.14%
MSFTMicrosoft Corp5.77%5.66%0.11%
AMZNAmazon.Com Inc3.89%3.79%0.10%
GOOGLAlphabet Inc,class A3.04%2.99%0.05%
AVGOBroadcom Inc2.68%2.66%0.02%
GOOGAlphabet Inc2.42%2.39%0.03%
METAMeta Platforms Inc1.92%1.93%0.01%
MUMicron Technology, Inc.1.65%1.60%0.05%
TSLATesla Inc1.58%1.52%0.06%

98.9% of PBP 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.

PBPSPY

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Frequently Asked Questions

Which is cheaper, PBP or SPY?

PBP has an expense ratio of 0.29% while SPY charges 0.09%. SPY is the cheaper option, by $20 a year on a $10,000 investment.

Which performed better, PBP or SPY?

Over the past year PBP returned +6.78% vs +15.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), PBP annualized +5.55% vs +9.56% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PBP or SPY?

PBP has been the more volatile fund at 49.4% annualized versus 15.7% for SPY. Worst drawdown: PBP -79.6% vs SPY -54.5%.

Should I hold both PBP and SPY?

PBP and SPY have a monthly-return correlation of 0.13, 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 PBP and SPY?

98.9% of PBP's money is in holdings SPY also owns. 97.6% of SPY's is in holdings PBP also owns. They hold 486 positions in common, counted across the 491 positions we hold weights for in PBP and 504 in SPY.

Which pays a higher dividend, PBP or SPY?

PBP yields 10.40% while SPY yields 0.98%, so PBP currently pays the higher dividend yield.

Is SPY better than PBP?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 38.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.