PEO vs SPY
Adams Natural Resources Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. PEO delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | PEO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.09% | |
| AUM | $740M | $821.1B | |
| Dividend Yield | 11.99% | 1.01% | |
| Holdings | 53 | 505 | |
| YTD Return | +28.72% | +12.22% | |
| 1Y Return | +34.71% | +20.83% | |
| 3Y Return (annualized) | +15.63% | +21.70% | |
| 5Y Return (annualized) | +22.70% | +12.98% | |
| Volatility (annualized) | 23.0% | 15.3% | |
| Max Drawdown | -70.9% | -56.5% | |
| Fund Family | Adams Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 30, 1929 | Jan 22, 1993 |
PEO vs SPY Performance
Adams Natural Resources Fund (PEO) is a ETF from Adams Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PEO returned +34.71% while SPY returned +20.83%. Year to date, PEO is up 28.72% versus a gain of 12.22% for SPY.
Over three years, PEO compounded at +15.63% per year against +21.70% for SPY; over five years the annualized figures are +22.70% and +12.98% respectively. Across the full 31-year window we track, PEO has the edge at +10.41% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEO has been the more volatile fund, with annualized monthly volatility of 23.0% 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 -70.9% for PEO 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PEO charges 0.58% per year while SPY charges 0.09%. On a $10,000 position that is $58 vs $9 annually, a gap of $49 per year that compounds over a long holding period. On income, PEO currently yields 11.99% against 1.01% for SPY.
Holdings Overlap
PEO and SPY share 42 holdings out of 515 unique holdings combined, representing a 4.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEO or SPY?
PEO has an expense ratio of 0.58% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, PEO or SPY?
Over the past year PEO returned +34.71% vs +20.83% for SPY, so PEO leads on 1-year performance. Over the longest common window we track (31 years), PEO annualized +10.41% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, PEO or SPY?
PEO has been the more volatile fund at 23.0% annualized versus 15.3% for SPY. Worst drawdown: PEO -70.9% vs SPY -56.5%.
Should I hold both PEO and SPY?
PEO and SPY have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEO and SPY?
PEO and SPY share 42 common holdings with a 4.6% weight overlap. Combined, they hold 515 unique securities.
Which pays a higher dividend, PEO or SPY?
PEO yields 11.99% while SPY yields 1.01%, so PEO currently pays the higher dividend yield.
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