PEPS vs SPY
Parametric Equity Plus ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, PEPS or SPY?
Nearly the same fund. SPY costs less.
SPY has a lower expense ratio. PEPS led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.98. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 38.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PEPS | SPY |
|---|---|---|
| Expense Ratio | 0.10% | 0.09%Best |
| AUM | $29M | $804.7B |
| Dividend Yield | 0.91% | 0.98% |
| Holdings | 193 | 505 |
| YTD Return | +13.39% | +13.51%Best |
| 1Y Return | +19.57%Best | +18.19% |
| 3Y Return (annualized) | - | +23.29% |
| 5Y Return (annualized) | - | +13.21% |
| Volatility (annualized) | 12.9% | 12.6%Best |
| Max Drawdown | -21.0% | -18.8%Best |
| $10,000 over 1.9 years | $13,559Best | $13,201 |
| Top 10 Weight | 38.0% | 37.8%Best |
| Fund Family | Parametric | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 7, 2024 | Jan 22, 1993 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Nov 8, 2024 to Sep 25, 2026 (1.9 years).
PEPS vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.9 years both funds cover.
PEPS vs SPY Performance
Parametric Equity Plus ETF (PEPS) is an ETF from Parametric and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PEPS returned +19.57% while SPY returned +18.19%. Year to date, PEPS is up 13.39% versus a gain of 13.51% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEPS has been the more volatile fund, with annualized monthly volatility of 12.9% compared with 12.6% 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 -21.0% for PEPS and -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PEPS charges 0.10% per year while SPY charges 0.09%. On a $10,000 position that is $10 vs $9 annually, a gap of $1 per year that compounds over a long holding period. On income, PEPS currently yields 0.91% against 0.98% for SPY.
Holdings Overlap
87.4% of PEPS's money is in holdings SPY also owns. 67.2% of SPY's money is in holdings PEPS also owns.
Most of PEPS is already inside SPY. Owning both mostly buys the same companies twice.
123 positions in common, counted across the 195 positions we hold weights for in PEPS and 504 in SPY, against full books of 193 and 505.
What only one of them owns
Our book lists 374 positions for SPY that do not appear in our book for PEPS (32.1% of the fund), and 61 for PEPS that do not appear in SPY (9.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PEPS | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.42% | 8.01% | 0.59% |
| AAPLApple, Inc | 7.01% | 7.26% | 0.25% |
| MSFTMicrosoft Corp | 5.40% | 5.66% | 0.26% |
| AMZNAmazon.Com Inc | 3.61% | 3.79% | 0.18% |
| GOOGLAlphabet Inc,class A | 2.90% | 2.99% | 0.09% |
| AVGOBroadcom Inc | 2.69% | 2.66% | 0.03% |
| GOOGAlphabet Inc | 2.57% | 2.39% | 0.18% |
| METAMeta Platforms Inc | 1.95% | 1.93% | 0.02% |
| MUMicron Technology, Inc. | 1.98% | 1.60% | 0.38% |
| JPMJpmorgan Chase | 1.72% | 1.45% | 0.27% |
87.4% of PEPS is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PEPS or SPY?
PEPS has an expense ratio of 0.10% while SPY charges 0.09%. SPY is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, PEPS or SPY?
Over the past year PEPS returned +19.57% vs +18.19% for SPY, so PEPS leads on 1-year performance. Over the longest common window we track (2 years), PEPS annualized +17.38% vs +15.74% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PEPS or SPY?
PEPS has been the more volatile fund at 12.9% annualized versus 12.6% for SPY. Worst drawdown: PEPS -21.0% vs SPY -18.8%.
Should I hold both PEPS and SPY?
PEPS and SPY have a monthly-return correlation of 0.98, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between PEPS and SPY?
87.4% of PEPS's money is in holdings SPY also owns. 67.2% of SPY's is in holdings PEPS also owns. They hold 123 positions in common, counted across the 195 positions we hold weights for in PEPS and 504 in SPY.
Which pays a higher dividend, PEPS or SPY?
PEPS yields 0.91% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.
Is SPY better than PEPS?
SPY has a lower expense ratio. PEPS led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.98. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.