PCY vs SPY
Invesco Emerging Markets Sovereign Debt 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 | PCY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $1.4B | $789.1B | |
| Dividend Yield | 5.81% | 1.01% | |
| Holdings | 104 | 505 | |
| YTD Return | +1.48% | +14.47% | |
| 1Y Return | +7.20% | +21.96% | |
| 3Y Return (annualized) | +10.24% | +21.70% | |
| 5Y Return (annualized) | +1.13% | +13.30% | |
| Volatility (annualized) | 13.6% | 15.3% | |
| Max Drawdown | -49.4% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 11, 2007 | Jan 22, 1993 |
PCY vs SPY Performance
Invesco Emerging Markets Sovereign Debt ETF (PCY) 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 PCY returned +7.20% while SPY returned +21.96%. Year to date, PCY is up 1.48% versus a gain of 14.47% for SPY.
Over three years, PCY compounded at +10.24% per year against +21.70% for SPY; over five years the annualized figures are +1.13% and +13.30% respectively. Across the full 19-year window we track, SPY has the edge at +8.87% annualized vs +0.80%. 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 13.6% for PCY. 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 -49.4% for PCY 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCY charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, PCY currently yields 5.81% against 1.01% for SPY.
Holdings Overlap
PCY and SPY share 0 holdings out of 581 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, PCY or SPY?
PCY has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, PCY or SPY?
Over the past year PCY returned +7.20% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), PCY annualized +0.80% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, PCY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.6% for PCY. Worst drawdown: PCY -49.4% vs SPY -56.5%.
Should I hold both PCY and SPY?
PCY and SPY have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCY and SPY?
PCY and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 581 unique securities.
Which pays a higher dividend, PCY or SPY?
PCY yields 5.81% while SPY yields 1.01%, so PCY currently pays the higher dividend yield.
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