PBW vs SPY

Quick Verdict

SPY has a lower expense ratio. PBW delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: PBWMore Diversified: SPY

Side-by-Side Comparison

MetricPBWSPYWinner
Expense Ratio0.64%0.09%
AUM$386M$789.1B
Dividend Yield1.21%1.01%
Holdings71505
YTD Return+8.30%+13.79%
1Y Return+51.16%+23.66%
3Y Return (annualized)-2.86%+21.40%
5Y Return (annualized)-14.55%+13.37%
Volatility (annualized)35.5%15.3%
Max Drawdown-89.7%-56.5%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
InceptionMar 3, 2005Jan 22, 1993

PBW vs SPY Performance

Invesco WilderHill Clean Energy ETF (PBW) 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 PBW returned +51.16% while SPY returned +23.66%. Year to date, PBW is up 8.30% versus a gain of 13.79% for SPY.

Over three years, PBW compounded at -2.86% per year against +21.40% for SPY; over five years the annualized figures are -14.55% and +13.37% respectively. Across the full 21-year window we track, SPY has the edge at +8.85% annualized vs -3.19%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PBW has been the more volatile fund, with annualized monthly volatility of 35.5% compared with 15.3% 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 -89.7% for PBW 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PBW charges 0.64% per year while SPY charges 0.09%. On a $10,000 position that is $64 vs $9 annually, a gap of $55 per year that compounds over a long holding period. On income, PBW currently yields 1.21% against 1.01% for SPY.

Holdings Overlap

1.7%overlap

PBW and SPY share 5 holdings out of 567 unique holdings combined, representing a 1.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PBWWeight in SPYDifference
TSLA1.34%1.82%0.48%
PWR1.51%0.16%1.35%
MPWR1.51%0.10%1.41%
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Frequently Asked Questions

Which is cheaper, PBW or SPY?

PBW has an expense ratio of 0.64% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $55 per year of difference.

Which performed better, PBW or SPY?

Over the past year PBW returned +51.16% vs +23.66% for SPY, so PBW leads on 1-year performance. Over the longest common window we track (21 years), PBW annualized -3.19% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, PBW or SPY?

PBW has been the more volatile fund at 35.5% annualized versus 15.3% for SPY. Worst drawdown: PBW -89.7% vs SPY -56.5%.

Should I hold both PBW and SPY?

PBW and SPY have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PBW and SPY?

PBW and SPY share 5 common holdings with a 1.7% weight overlap. Combined, they hold 567 unique securities.

Which pays a higher dividend, PBW or SPY?

PBW yields 1.21% while SPY yields 1.01%, so PBW currently pays the higher dividend yield.

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