PDO vs SPY
PIMCO Dynamic Income Opportunities Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. PDO offers more diversification with 635 holdings.
Side-by-Side Comparison
| Metric | PDO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 5.22% | 0.09% | |
| AUM | $1.9B | $821.1B | |
| Dividend Yield | 12.02% | 1.01% | |
| Holdings | 635 | 505 | |
| YTD Return | -0.75% | +14.24% | |
| 1Y Return | +5.13% | +21.71% | |
| 3Y Return (annualized) | +11.74% | +22.10% | |
| 5Y Return (annualized) | +2.08% | +13.21% | |
| Volatility (annualized) | 17.3% | 15.3% | |
| Max Drawdown | -36.8% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 29, 2021 | Jan 22, 1993 |
PDO vs SPY Performance
PIMCO Dynamic Income Opportunities Fund (PDO) 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 PDO returned +5.13% while SPY returned +21.71%. Year to date, PDO is down 0.75% versus a gain of 14.24% for SPY.
Over three years, PDO compounded at +11.74% per year against +22.10% for SPY; over five years the annualized figures are +2.08% and +13.21% respectively. Across the full 6-year window we track, SPY has the edge at +8.86% annualized vs +3.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDO has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -36.8% for PDO 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDO charges 5.22% per year while SPY charges 0.09%. On a $10,000 position that is $522 vs $9 annually, a gap of $513 per year that compounds over a long holding period. On income, PDO currently yields 12.02% against 1.01% for SPY.
Holdings Overlap
PDO and SPY share 0 holdings out of 521 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, PDO or SPY?
PDO has an expense ratio of 5.22% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $513 per year of difference.
Which performed better, PDO or SPY?
Over the past year PDO returned +5.13% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), PDO annualized +3.80% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, PDO or SPY?
PDO has been the more volatile fund at 17.3% annualized versus 15.3% for SPY. Worst drawdown: PDO -36.8% vs SPY -56.5%.
Should I hold both PDO and SPY?
PDO and SPY have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDO and SPY?
PDO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 521 unique securities.
Which pays a higher dividend, PDO or SPY?
PDO yields 12.02% while SPY yields 1.01%, so PDO currently pays the higher dividend yield.
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