PDN vs SPY
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. PDN offers more diversification with 1557 holdings.
Side-by-Side Comparison
| Metric | PDN | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.09% | |
| AUM | $350M | $789.1B | |
| Dividend Yield | 3.29% | 1.01% | |
| Holdings | 1,599 | 505 | |
| YTD Return | +12.42% | +13.75% | |
| 1Y Return | +22.04% | +22.91% | |
| 3Y Return (annualized) | +17.89% | +21.67% | |
| 5Y Return (annualized) | +7.17% | +13.32% | |
| Volatility (annualized) | 18.1% | 15.3% | |
| Max Drawdown | -60.1% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2007 | Jan 22, 1993 |
PDN vs SPY Performance
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF (PDN) 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 PDN returned +22.04% while SPY returned +22.91%. Year to date, PDN is up 12.42% versus a gain of 13.75% for SPY.
Over three years, PDN compounded at +17.89% per year against +21.67% for SPY; over five years the annualized figures are +7.17% and +13.32% respectively. Across the full 19-year window we track, SPY has the edge at +8.85% annualized vs +4.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDN has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -60.1% for PDN 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PDN charges 0.47% per year while SPY charges 0.09%. On a $10,000 position that is $47 vs $9 annually, a gap of $38 per year that compounds over a long holding period. On income, PDN currently yields 3.29% against 1.01% for SPY.
Holdings Overlap
PDN and SPY share 3 holdings out of 2057 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PDN or SPY?
PDN has an expense ratio of 0.47% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, PDN or SPY?
Over the past year PDN returned +22.04% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), PDN annualized +4.15% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PDN or SPY?
PDN has been the more volatile fund at 18.1% annualized versus 15.3% for SPY. Worst drawdown: PDN -60.1% vs SPY -56.5%.
Should I hold both PDN and SPY?
PDN and SPY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDN and SPY?
PDN and SPY share 3 common holdings with a 0.2% weight overlap. Combined, they hold 2057 unique securities.
Which pays a higher dividend, PDN or SPY?
PDN yields 3.29% while SPY yields 1.01%, so PDN currently pays the higher dividend yield.
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