PCN vs SPY
PIMCO Corporate & Income Strategy Fund 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 | PCN | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.88% | 0.09% | |
| AUM | $864M | $789.1B | |
| Dividend Yield | 11.74% | 1.01% | |
| Holdings | 526 | 505 | |
| YTD Return | -0.12% | +13.75% | |
| 1Y Return | +4.07% | +22.91% | |
| 3Y Return (annualized) | +5.20% | +21.67% | |
| 5Y Return (annualized) | +0.42% | +13.32% | |
| Volatility (annualized) | 21.7% | 15.3% | |
| Max Drawdown | -66.7% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 21, 2001 | Jan 22, 1993 |
PCN vs SPY Performance
PIMCO Corporate & Income Strategy Fund (PCN) 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 PCN returned +4.07% while SPY returned +22.91%. Year to date, PCN is down 0.12% versus a gain of 13.75% for SPY.
Over three years, PCN compounded at +5.20% per year against +21.67% for SPY; over five years the annualized figures are +0.42% and +13.32% respectively. Across the full 25-year window we track, SPY has the edge at +8.85% annualized vs +1.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PCN has been the more volatile fund, with annualized monthly volatility of 21.7% 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 -66.7% for PCN 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCN charges 0.88% per year while SPY charges 0.09%. On a $10,000 position that is $88 vs $9 annually, a gap of $79 per year that compounds over a long holding period. On income, PCN currently yields 11.74% against 1.01% for SPY.
Holdings Overlap
PCN and SPY share 1 holdings out of 525 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 PCN | Weight in SPY | Difference |
|---|---|---|---|
| VICI | 0.30% | 0.04% | 0.26% |
Frequently Asked Questions
Which is cheaper, PCN or SPY?
PCN has an expense ratio of 0.88% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, PCN or SPY?
Over the past year PCN returned +4.07% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (25 years), PCN annualized +1.29% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PCN or SPY?
PCN has been the more volatile fund at 21.7% annualized versus 15.3% for SPY. Worst drawdown: PCN -66.7% vs SPY -56.5%.
Should I hold both PCN and SPY?
PCN and SPY have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCN and SPY?
PCN and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 525 unique securities.
Which pays a higher dividend, PCN or SPY?
PCN yields 11.74% while SPY yields 1.01%, so PCN currently pays the higher dividend yield.
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