PCM vs SPY
PCM Fund Inc. 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 | PCM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.63% | 0.09% | |
| AUM | $71M | $789.1B | |
| Dividend Yield | 13.82% | 1.01% | |
| Holdings | 318 | 505 | |
| YTD Return | +0.32% | +13.39% | |
| 1Y Return | +1.92% | +22.52% | |
| 3Y Return (annualized) | -5.33% | +21.36% | |
| 5Y Return (annualized) | -3.73% | +13.19% | |
| Volatility (annualized) | 16.2% | 15.3% | |
| Max Drawdown | -73.2% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 2, 1993 | Jan 22, 1993 |
PCM vs SPY Performance
PCM Fund Inc. (PCM) is a ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PCM returned +1.92% while SPY returned +22.52%. Year to date, PCM is up 0.32% versus a gain of 13.39% for SPY.
Over three years, PCM compounded at -5.33% per year against +21.36% for SPY; over five years the annualized figures are -3.73% and +13.19% respectively. Across the full 31-year window we track, SPY has the edge at +8.84% annualized vs -0.65%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PCM has been the more volatile fund, with annualized monthly volatility of 16.2% 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 -73.2% for PCM 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCM charges 1.63% per year while SPY charges 0.09%. On a $10,000 position that is $163 vs $9 annually, a gap of $154 per year that compounds over a long holding period. On income, PCM currently yields 13.82% against 1.01% for SPY.
Holdings Overlap
PCM and SPY share 1 holdings out of 518 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PCM | Weight in SPY | Difference |
|---|---|---|---|
| VICI | 0.60% | 0.04% | 0.56% |
Frequently Asked Questions
Which is cheaper, PCM or SPY?
PCM has an expense ratio of 1.63% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $154 per year of difference.
Which performed better, PCM or SPY?
Over the past year PCM returned +1.92% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), PCM annualized -0.65% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, PCM or SPY?
PCM has been the more volatile fund at 16.2% annualized versus 15.3% for SPY. Worst drawdown: PCM -73.2% vs SPY -56.5%.
Should I hold both PCM and SPY?
PCM and SPY have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCM and SPY?
PCM and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 518 unique securities.
Which pays a higher dividend, PCM or SPY?
PCM yields 13.82% while SPY yields 1.01%, so PCM currently pays the higher dividend yield.
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