PCEF vs SPY
Invesco CEF Income Composite 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 503 holdings.
Side-by-Side Comparison
| Metric | PCEF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.71% | 0.09% | |
| AUM | $796M | $789.1B | |
| Dividend Yield | 7.61% | 1.01% | |
| Holdings | 110 | 505 | |
| YTD Return | +7.64% | +13.75% | |
| 1Y Return | +11.67% | +22.91% | |
| 3Y Return (annualized) | +13.26% | +21.67% | |
| 5Y Return (annualized) | +4.89% | +13.32% | |
| Volatility (annualized) | 11.6% | 15.3% | |
| Max Drawdown | -46.0% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 19, 2010 | Jan 22, 1993 |
PCEF vs SPY Performance
Invesco CEF Income Composite ETF (PCEF) 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 PCEF returned +11.67% while SPY returned +22.91%. Year to date, PCEF is up 7.64% versus a gain of 13.75% for SPY.
Over three years, PCEF compounded at +13.26% per year against +21.67% for SPY; over five years the annualized figures are +4.89% and +13.32% respectively. Across the full 17-year window we track, SPY has the edge at +8.85% annualized vs +1.52%. 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 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 -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 0.86. 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 7.61% against 1.01% for SPY.
Holdings Overlap
PCEF and SPY share 0 holdings out of 610 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, PCEF or SPY?
PCEF has an expense ratio of 2.71% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $262 per year of difference.
Which performed better, PCEF or SPY?
Over the past year PCEF returned +11.67% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), PCEF annualized +1.52% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PCEF or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.6% for PCEF. Worst drawdown: PCEF -46.0% vs SPY -56.5%.
Should I hold both PCEF and SPY?
PCEF and SPY have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCEF and SPY?
PCEF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 610 unique securities.
Which pays a higher dividend, PCEF or SPY?
PCEF yields 7.61% while SPY yields 1.01%, so PCEF currently pays the higher dividend yield.
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