PCQ vs SPY
PIMCO California Municipal Income 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 | PCQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.09% | |
| AUM | $556M | $789.1B | |
| Dividend Yield | 4.28% | 1.01% | |
| Holdings | 263 | 505 | |
| YTD Return | +4.17% | +13.39% | |
| 1Y Return | +13.14% | +22.52% | |
| 3Y Return (annualized) | +1.09% | +21.36% | |
| 5Y Return (annualized) | -10.06% | +13.19% | |
| Volatility (annualized) | 15.6% | 15.3% | |
| Max Drawdown | -60.6% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 29, 2001 | Jan 22, 1993 |
PCQ vs SPY Performance
PIMCO California Municipal Income Fund (PCQ) 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 PCQ returned +13.14% while SPY returned +22.52%. Year to date, PCQ is up 4.17% versus a gain of 13.39% for SPY.
Over three years, PCQ compounded at +1.09% per year against +21.36% for SPY; over five years the annualized figures are -10.06% and +13.19% respectively. Across the full 25-year window we track, SPY has the edge at +8.84% annualized vs -1.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PCQ has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -60.6% for PCQ 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCQ charges 1.20% per year while SPY charges 0.09%. On a $10,000 position that is $120 vs $9 annually, a gap of $111 per year that compounds over a long holding period. On income, PCQ currently yields 4.28% against 1.01% for SPY.
Holdings Overlap
PCQ and SPY share 0 holdings out of 587 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, PCQ or SPY?
PCQ has an expense ratio of 1.20% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $111 per year of difference.
Which performed better, PCQ or SPY?
Over the past year PCQ returned +13.14% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (25 years), PCQ annualized -1.10% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, PCQ or SPY?
PCQ has been the more volatile fund at 15.6% annualized versus 15.3% for SPY. Worst drawdown: PCQ -60.6% vs SPY -56.5%.
Should I hold both PCQ and SPY?
PCQ and SPY have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCQ and SPY?
PCQ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 587 unique securities.
Which pays a higher dividend, PCQ or SPY?
PCQ yields 4.28% while SPY yields 1.01%, so PCQ currently pays the higher dividend yield.
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