PDI vs SPY
PIMCO Dynamic 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. PDI offers more diversification with 1,822 holdings.
Side-by-Side Comparison
| Metric | PDI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 5.12% | 0.09% | |
| AUM | $7.4B | $789.1B | |
| Dividend Yield | 16.61% | 1.01% | |
| Holdings | 1,822 | 505 | |
| YTD Return | -3.34% | +14.47% | |
| 1Y Return | -5.02% | +21.96% | |
| 3Y Return (annualized) | +8.17% | +21.70% | |
| 5Y Return (annualized) | +2.03% | +13.30% | |
| Volatility (annualized) | 14.6% | 15.3% | |
| Max Drawdown | -48.0% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2012 | Jan 22, 1993 |
PDI vs SPY Performance
PIMCO Dynamic Income Fund (PDI) 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 PDI returned -5.02% while SPY returned +21.96%. Year to date, PDI is down 3.34% versus a gain of 14.47% for SPY.
Over three years, PDI compounded at +8.17% per year against +21.70% for SPY; over five years the annualized figures are +2.03% and +13.30% respectively. Across the full 14-year window we track, SPY has the edge at +8.87% annualized vs +2.07%. 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 14.6% for PDI. 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 -48.0% for PDI 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDI charges 5.12% per year while SPY charges 0.09%. On a $10,000 position that is $512 vs $9 annually, a gap of $503 per year that compounds over a long holding period. On income, PDI currently yields 16.61% against 1.01% for SPY.
Holdings Overlap
PDI and SPY share 1 holdings out of 527 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 PDI | Weight in SPY | Difference |
|---|---|---|---|
| VICI | 0.33% | 0.04% | 0.29% |
Frequently Asked Questions
Which is cheaper, PDI or SPY?
PDI has an expense ratio of 5.12% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $503 per year of difference.
Which performed better, PDI or SPY?
Over the past year PDI returned -5.02% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), PDI annualized +2.07% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, PDI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.6% for PDI. Worst drawdown: PDI -48.0% vs SPY -56.5%.
Should I hold both PDI and SPY?
PDI and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDI and SPY?
PDI and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 527 unique securities.
Which pays a higher dividend, PDI or SPY?
PDI yields 16.61% while SPY yields 1.01%, so PDI currently pays the higher dividend yield.
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