PCEF vs SPY
Invesco CEF Income Composite ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, PCEF or SPY?
Debt-oriented balanced against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. PCEF is less concentrated, with 29.4% of the fund in its ten largest positions against 37.8%.
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
| Metric | PCEF | SPY |
|---|---|---|
| Expense Ratio | 2.71% | 0.09%Best |
| AUM | $807M | $804.7B |
| Dividend Yield | 7.47% | 0.98% |
| Holdings | 109 | 505 |
| YTD Return | +4.60% | +13.82%Best |
| 1Y Return | +5.19% | +16.96%Best |
| 3Y Return (annualized) | +13.59% | +22.97%Best |
| 5Y Return (annualized) | +4.60% | +13.73%Best |
| Volatility (annualized) | 11.6%Best | 14.4% |
| Max Drawdown | -46.0% | -34.1%Best |
| $10,000 over 5 years | $12,522 | $19,027Best |
| Top 10 Weight | 29.4%Best | 37.8% |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Allocation/Balanced | Equity |
| Style | Debt-oriented balanced | Large Cap Blend |
| Inception | Feb 19, 2010 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Feb 19, 2010 to Sep 21, 2026 (16.6 years).
PCEF 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
PCEF vs SPY Performance
Invesco CEF Income Composite ETF (PCEF) 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 PCEF returned +5.19% while SPY returned +16.96%. Year to date, PCEF is up 4.60% versus a gain of 13.82% for SPY.
Over three years, PCEF compounded at +13.59% per year against +22.97% for SPY; over five years the annualized figures are +4.60% and +13.73% respectively. Across the full 17-year window we track, SPY has the edge at +12.91% annualized vs +1.33%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.4% compared with 11.6% for PCEF. 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 -46.0% for PCEF 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
PCEF charges 2.71% per year while SPY charges 0.09%. On a $10,000 position that is $271 vs $9 annually, a gap of $262 per year that compounds over a long holding period. On income, PCEF currently yields 7.47% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 106 holdings in PCEF and 504 in SPY, totalling 100.0% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 106 positions we hold weights for in PCEF and 504 in SPY, against full books of 109 and 505.
What only one of them owns
Our book lists 497 positions for SPY that do not appear in our book for PCEF (99.3% of the fund), and 104 for PCEF that do not appear in SPY (97.2%).
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.
You are not choosing between two funds in isolation.
Whichever of PCEF and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PCEF or SPY?
PCEF has an expense ratio of 2.71% while SPY charges 0.09%. SPY is the cheaper option, by $262 a year on a $10,000 investment.
Which performed better, PCEF or SPY?
Over the past year PCEF returned +5.19% vs +16.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), PCEF annualized +1.33% vs +12.91% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PCEF or SPY?
SPY has been the more volatile fund at 14.4% annualized versus 11.6% for PCEF. Worst drawdown: PCEF -46.0% vs SPY -34.1%.
Should I hold both PCEF and SPY?
PCEF 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.
Which pays a higher dividend, PCEF or SPY?
PCEF yields 7.47% while SPY yields 0.98%, so PCEF currently pays the higher dividend yield.
Is SPY better than PCEF?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. PCEF is less concentrated, with 29.4% 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.